RELATIONSHIP BETWEEN EMPLOYEE ORGANISATIONAL...

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RELATIONSHIP BETWEEN EMPLOYEE

ENGAGEMENT, CAREER DEVELOPMENT,

ORGANISATIONAL CULTURE, PSYCHOLOGICAL

OWNERSHIP AND STAFF’S TALENT

MANAGEMENT IN SERVICE INDUSTRY

YAP YING YING

MASTER OF BUSINESS ADMINISTRATION

UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY AND MANAGEMENT

DECEMBER 2016

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YAP YING YING

A RESEARCH PROJECT SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR THE

DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY AND

MANAGEMENT

DECEMBER 2016

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BY

YAP YING YING

THIS RESEARCH PROJECT IS SUPERVISED BY:

MS. CHEAH LEE FONG

LECTURER

FACULTY OF ACCOUNTANCY AND

MANAGEMENT

DEPARTMENT OF INTERNATIONAL BUSINESS

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Copyright @ 2016

ALL RIGHTS RESERVED. No part of this paper may be reproduced, stored in a

retrieval system, or transmitted in any form or by any means, graphic, electronic,

mechanical, photocopying, recording, scanning, or otherwise, without the prior

consent of the authors.

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DECLARATION

I hereby declare that:

1) This Research Project is the end result of my own work and that due

acknowledgement has been given in the references to all sources of

information be they printed, electronic, or personal.

2) No portion of this research project has been submitted in support of any

application for any other degree or qualification of this or any other

university, or other institutes of learning.

3) The word count of this research report is _________________________.

Name of Student: Yap Ying Ying

Student ID: 14UKM01256

Signature: _____________

Date: _____________

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ACKNOWLEDGEMENTS

I would like take this opportunity to express my appreciation to all those who

supported me during the research and writing of this research project.

First of all, my greatest thanks to Ms. Cheah Lee Fong, my final year research

project supervisor for her persistent support and patience. Her encouragement,

knowledge, and persistence were instrumental in the completion of my thesis.

Thank you for her expertise and supervision.

I would also particularly grateful to Dr. Pok Wei Fong for her graciously guidance

and provided assistance when asked. I sincerely appreciate her detailed review of

my research proposal and her contribution to the success of my study.

My appreciation also goes to my family who continuously believing in me and

being always proud of my achievements.

Last but not least, I would like to acknowledge the intellectual and practical

support of Universiti Tunku Abdul Rahman in order to complete this final year

research project.

Thank you.

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TABLE OF CONTENTS

Copyright ................................................................................................................. ii

DECLARATION ................................................................................................... iii

ACKNOWLEDGEMENTS .................................................................................... iv

TABLE OF CONTENTS ......................................................................................... v

LIST OF TABLES ................................................................................................... x

LIST OF FIGURES ................................................................................................ xi

ABSTRACT ........................................................................................................... xii

CHAPTER 1 ............................................................................................................ 1

INTRODUCTION ................................................................................................... 1

1.1 Research Background ..................................................................... 3

1.2 Problem Statement ......................................................................... 6

1.3 Research Objectives ....................................................................... 8

1.4 Research Questions ........................................................................ 9

1.5 Significant of the study ................................................................... 9

CHAPTER 2 .......................................................................................................... 11

LITERATURE REVIEW ...................................................................................... 11

2.1 Employees Engagement ............................................................... 12

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2.2 Career Development ..................................................................... 14

2.3 Organisational Culture ................................................................. 16

2.3.1 Leadership style ................................................................... 17

2.3.2 Communication ................................................................... 18

2.3.3 Reward and Recognition ..................................................... 19

2.4 Psychological Ownership ............................................................. 19

2.4.1 Self-efficacy ........................................................................ 21

2.4.2 Self-identity ......................................................................... 21

2.4.3 Belongingness ..................................................................... 22

2.5 Talent Management ...................................................................... 22

2.5.1 Defining the Talent Management ........................................ 24

2.5.2 The importance of Talent Management .............................. 25

2.5.3 Staff Talent Management in term of Talent Retention ........ 28

2.5.4 How Talent Management Managing Retention .................. 29

2.6 Conceptual Framework ................................................................ 31

2.7 Research Hypotheses .................................................................... 32

CHAPTER 3 .......................................................................................................... 33

METHODOLOGY ................................................................................................ 33

3.1 Research Design ........................................................................... 33

3.2 Sampling Design .......................................................................... 35

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3.2.1 Target Population ................................................................ 35

3.2.2 Sample Size ......................................................................... 35

3.2.3 Sampling Technique ............................................................ 36

3.3 Data Collection Procedures .......................................................... 36

3.4 Data Collection Method ............................................................... 37

3.5 Research Instrument ..................................................................... 38

3.5.1 Questionnaire design ........................................................... 39

3.5.2 Defining the questions ......................................................... 39

3.5.3 Measures Scales .................................................................. 46

3.6 Pilot Test ....................................................................................... 47

3.7 Data Processing and Analysis Technique .................................... 48

3.7.1 Descriptive Analysis ............................................................ 49

3.7.2 Validity and Reliability analysis ......................................... 49

3.7.3 Multiple Regression Analysis ............................................. 51

3.7.4 Pearson’s Bivariate Correlation Analysis ............................ 52

CHAPTER 4 .......................................................................................................... 53

RESEARCH RESULTS AND FINDING ............................................................. 53

4.1 Response Rate .............................................................................. 53

4.2 Descriptive Analysis ..................................................................... 54

4.2.1 Gender of Participants ......................................................... 54

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4.2.2 Age of Participants .............................................................. 55

4.2.3 Participants’ Department ..................................................... 55

4.2.2 Participants’ Designation Job Level .................................... 56

4.2.4 Education Level of Participants .......................................... 57

4.2.5 Years of Working Experience of Participants ..................... 57

4.3 Reliability and Validity Analysis ................................................. 58

4.4 Hypotheses Testing ...................................................................... 59

4.4.1 Multiple Regressions ........................................................... 59

4.4.2 ANOVA ............................................................................... 60

4.4.3 Summary of the Variables’ Mean and Standard Deviation . 61

4.4.4 Pearson Correlation Coefficient .......................................... 63

4.4.5 Coefficients ......................................................................... 64

4.5 Assessment of Hypotheses ........................................................... 65

CHAPTER 5 .......................................................................................................... 67

DISCUSSION AND CONCLUSION ................................................................... 67

5.1 Discussion .................................................................................... 67

5.2 Implication of studies ................................................................... 71

5.3 Limitation ..................................................................................... 73

5.4 Areas for Further Research ........................................................... 73

5.5 Conclusion .................................................................................... 74

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REFERENCES ...................................................................................................... 75

APPENDICES ....................................................................................................... 87

Appendix A Evaluation Questionnaire for Participants ..................... 87

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LIST OF TABLES

Table 1: Demographic Information questions 40

Table 2: Question regarding employees’ general attitude towards the organisation 41

Table 3: Employee’s engagement questions 42

Table 4: Career Development questions 43

Table 5: Organisational Culture questions 44

Table 6: Psychological Ownership questions 45

Table 7: Gender of participants 54

Table 8: Age of Participants 55

Table 9: Participants’ Department 55

Table 10: Participants’ Designation Job Level 56

Table 11: Education Level of Participants 57

Table 12: Years of Working Experience of Participants 57

Table 13: Summary of the Cronbach’s alpha value 58

Table 14: Modal Summary 59

Table 15: ANOVA table 60

Table 16: Mean and standard deviation of variables 61

Table 17: Pearson Correlation Coefficient 62

Table 18: Coefficients table 64

Table 19: Questions 1 for Career Development 68

Table 20: Questions 8 for Career Development 68

Table 21: Questions 2 for Organisational Culture 69

Table 22: Questions 6 for Employee Engagement 70

Table 23: Questions 10 for Psychological Ownership 70

Table 24: Questions 6 for Organisational Culture 71

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LIST OF FIGURES

Figure 1: Proposed Conceptual Framework…………………………………….31

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ABSTRACT

RELATIONSHIP BETWEEN EMPLOYEE ENGAGEMENT, CAREER

DEVELOPMENT, ORGANISATIONAL CULTURE, PSYCHOLOGICAL

OWNERSHIP AND STAFF’S TALENT MANAGEMENT IN SERVICE

INDUSTRY

By

YAP YING YING

Employee engagement, career development, organisational culture and

psychological ownership have been recognised by many authors as an important

talent management practice in the retention of talent employees. In today’s

complex and highly competitive business environment, retaining highly skilled

employees and knowledge workers has become one of the major priorities of

organisations and the vital differentiator for talent management as the right talent

is the assets to organisations and is necessary for the survival of every business.

Consequently, staff’s talent management is now viewed as an instrument to

strengthen organisational capability through employee engagement, career

development, organisational culture and psychological ownership. For research

methodology, 104 employees of Cruises Administrative Services Sdn Bhd have

enrolled in this research. Descriptive survey design was adopted since it helps to

identified, described and understand the characteristics of a group of people in a

given situation for further research. In addition, multiple regressions analysis and

correlations analysis were performed with the aim of analyse the relationships

between independent variables and dependent variable.

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CHAPTER 1

INTRODUCTION

In today’s rapidly moving dynamic business environment, organisations begin to

discover and experience skills shortages and progressively harder to employ top

talent workers. The organisation also facing the challenge of retaining their talent

(Scullion, Collings, & Caligiuri, 2010; Tarique & Schuler, 2010) and the risk of

losing their current talent to the competitors with vast market changes,

demographic changes, international competition and the shift from Industrial age

to Information age (Michaels, Handfield-Jones, & Axelrod, 2001). As a

consequence, there is increasing needs for highly skilled employees and

knowledge workers.

Organisations should retain the talents by ensuring identification, commitment and

engagement through different aspects, such as organisational support,

organisational values and job challenges (Andersen, 2013). The capability to

maintain high talent employee is the key differentiator between those

organisations that making profit and those that do not (Mohammed, 2015; Wanjiru,

2007). Furthermore, organisation should reorganize their strategy to carry on their

top skills and resources they have when facing challenges in the talent

management.

Organisation needs to have a pool of potential talent to continue strive for success

in the era of globalization as talent becomes the potentially powerful source of

competitive advantage. In other words, organisation must realise their

responsibilities that they hold towards their employees and manage their work

forces effectively in order to achieve and maintain a wide-ranging competitive

advantage (Collings & Mellahi, 2009). As a result, retaining talented workers has

becoming the major concern of the organisations as in the immediate future, talent

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management and talent retention issues will becoming the most critical workforce

management challenges (Kibui, 2015).

Talent management is considered as the primary management tool to support

organisational competence through career development, employee engagement

and psychological ownership as well as organisation culture enhancement which

also the effort by the organisation to keep their desirable talent workers with the

organisation in order to gain competitive advantages and meet the business

objectives (Kibui, 2015).

On the other hand, research also shows that there are relationship between

employee engagement, organisational culture, psychological ownership and career

development which have a significant influence on staff’s talent management in

term of talent retention in the organisation (Lockwood, 2006). Successful

organisations have been increasingly distinguishing that survival and growth in

the existing market place cannot occur without an effective talent management

strategy (Wanjiru, 2007).

Lastly, this research paper is studied the relationship between employee

engagement, career development, organisational culture, psychological ownership

and Staff’s Talent Management in Service Industry and their impact on talent

retention. It also focusing on organisations should believe talent management able

to attain and retain the best talent workers for the success of the organisation. The

research methods used in this research is quantitative where quality questionnaire

have been performed. Data Collected was analysed using SPSS software

(Wambugu, 2014).

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1.1 Research Background

Today's global economy has become complex and highly competitive where

economic growth, glowing competition, high employee turnover and shortage of

skilled workers has become one of the critical concerns facing by the

organisations today (Lathitha, 2012). It is essential for the survival of the

organisation to learn compete successfully in order to achieve sustainable

development (Tarique & Schuler, 2010).

Organisation is depending on talented group of workers to transform its company

mission and vision into realism. Thus, attracting, developing and retaining great

talent can seem to be a never-ending task for the organisation. Organisation also

aim to developing the right talented people in the right place at the right time,

ensuring the comfort and save environment for the talented workers to contribute

their best effort and continue committed to the organisation (Uren & Jakson,

2012).

Besides that, it will also be advantages to understand the word “talent” before

going deeper discussion in talent management and its practices. The word “Talent”

in general is refers to the particular individual’s ability, skills and capabilities to

sustain in a particular position or field (Kaur, 2013). Talent also referring to those

people who have high prospective in order to successfully perform out

transformation and change in the organisation even though they are having limited

knowledge and skills (Kaur, 2013).

According to Cheese (2008), talent workers can generate great performance,

which in return can attract new talent and generates the wealth to rewards it.

Talent workers also drive the improvements in term of efficiency, quality,

improvement and customer satisfaction, which can feed into ending results. In

consequence, a term "Talent Management" has begun to the organisation in the

recently with the purpose of recommend one whole clarification for all issues in

term of attracting, developing and retaining the capable talent workers for future.

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According to Kaur (2013), the word “Talent Management” in an organisation is

defined as the process of attracting, developing and retaining potential talent

workers. In other words, talent management is referring to the development of

increasing new talent workers, developing and retaining current talent workers, as

well as attracting new skilful workers to join for the organisation. Whereas

Newhouse, Barbara, & Jones (2004), classified talent management as “ensuring an

equate supply of talent manpower across the organisation to accomplish the

competitive advantage, enhanced business performance, and maximizing the

efficiency of an organisation’s talent pool.

Talent management also involves positioning the right talented people in the right

place at the right time which able to ensure that talent workers can maximize their

talent for optimal the achievement of the organisation (Devine, 2008). Thus,

organisation has prioritized to make sure they obtain the right staff as talent

management has been associated to successful attraction, development and

retention of employees (Beheshtifar, 2011). Moreover, talent identification and

development helps the organisations to recognize which talent that is able to play

leadership roles in future.

Mokwaro & Abok (2014) has been investigated factors that will affect talent

management in the state corporations. Their study show that factors such as career

development, organisational culture, working environment, reward and

recognition will significantly influence the implementation of talent management

(Kibui, 2015).

In addition, long serving employees are a rarity nowadays and this is also an

evident which indicates that the turnover rate has increases in the organisations.

The blooming economy today has influenced the commitment level of employees

and they are changing their jobs more often than before (Boles, Madupalli,

Rutherford, & Wood, 2007). Thus, successful talent management strategies and

practices which begin the responsibility to talent workers achieve in having more

engaged employees and decrease the employee’s turnover rate. Consequently,

employee engagement plays a significant role and impact on employee efficiency

and talent retention.

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Employees are an organisational most important asset or resource. The reason is

employee is the one who carry out the day to day functions of the organisation

which enable the organisation to work smoothly and make profit (Abiodun, 2011).

Hence, when talented employees are engaged to their work and also willing to

committed to their organisation, it can be assume that the turnover rates would be

low (Lindholm, 2013). Employee engagement also considers an aspect to talent

management which has become the focal point of employee retention (Kibui,

2015).

Besides that, career and leadership development was identified as the primary

focus of talent management as well. Hence, talent management also consider as a

tool to strengthen organisational competence through performance enhancement,

succession planning and career development (Iles, 2007). Organisations can

develop targeted skills critical to the organisation and plan to refine their overall

talent management strategy.

The talent management practice also facilitates to encourage the influences of

talents and to release their potential which did not occur in the traditional

management. When organisation making the enlargement of opportunities

obtainable to the talent with the purpose of enhancing all employee skills and

contribution development opportunities to those who might be interested, it will

have significant influence on talent retention when employee having the career

advancement opportunities (Lockwood, 2006).

On the other hand, organisation culture that always having rewards and

recognition will facilitate to maintain talent and enhance performance of the

organisation. Management need to establish a skilled workforce for the talent to

understand the vision and mission of an organisation. Besides that, provide a work

life balance working environment to the employees also will able to successfully

attract and maintain necessary talent.

Last but not least, according to Fiorito, Bozeman, Young, & Meurs (2007),

psychological ownership also play an important role in the talent retention in an

organisation. Psychological ownership enable employee to take personal

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ownership which concerning a particular process, task, and procedure that

impacting performance in the organisation will increase their belongingness to the

organisation and willing continuous serve the organisation (Kaur, Sambasivan, &

Kumar, 2013). According to Branham (2001), many talent workers will leave the

company when they do not feel the belongingness to the organisation, could not

see their career development or their effort and contributions are not being

recognized and valued by others (Wanjiru, 2007).

In this research, Star Cruise Administrative Services Sdn Bhd is used as a basis of

information in the empirical measure and targeted sample was also done in this

company. Star Cruises is the third leading cruise line in the world after Carnival

Corporation and Royal Caribbean Cruises. Star Cruises is owned by Genting

Hong Kong and its corporate headquarters in Hong Kong. Star Cruise is

dominates the Asia-Pacific market with having ships like SuperStar Virgo,

SuperStar Aquarius, SuperStar Gemini, SuperStar Libra, Star Pisces, Taipan, and

Genting Dream.

1.2 Problem Statement

Talent shortage is being experienced by most of the organisation and this impact

the organisation regardless to industry facing significant challenges in recruitment

and retaining talented staff. This may due to the expertise possessed by existing

workers may not suite or required by the organisation for sustainable

competitiveness advantages (Buhler, 2008).

Besides that, talented candidates that in the international profession market will

have a plenty of choice (Kibui, 2015), hence talent retention become one of the

challenges facing by the organisations (Chew, 2004; Ng’ethe, Iravo, &

Namusonge, 2012) as a person is not hired for the right job (Kumar, 2013).

Besides that, organisational tend to spend a lot of money in recruited the most

talented workers to their organisation but do not really enhance much in retaining

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them to ensure a continuous flow of work and lose the talented worker in the end

(Tarique & Schuler, 2010). The consciousness of lack of talent are progressively

becoming one of the major human capital concerns and challenge for the

organisations as they compete for the same pool of talents (Gardner, 2002) and

struggle to keep those skilful and talented employees as well as the capability to

attract, develop, and retain a desired supply of key talent (Coy, P., & Ewing,

2007).

In addition, the efforts spend in attracting and recruiting talent workers are wasted

if organisation cannot retained them (Daley, 2002). Hence, it is essential to

emphasis on managing talented workers as an organisations competitive asset

(Nyanjom, 2013). Organisation also needs to deal with their talents in global

context and look into talent management seriously in order to enhance the

retention of top talent (Lockwood, 2006).

Talent management is serves as strong Human Resource Management tool for

evaluating talent retention in organisations as most of the organisation understand

that staff turnover might due to lack of promotion, ineffective training program,

poor compensation system, succession planning, and no career path, which is all

included in the principle of talent management (Frederick, 2014). In addition,

employing turnover analysis, exit interviews, salary/wages and benefits package

as well as workforce planning are necessary for talent management to understand

potential problems that causes the employee turnover (Daley, 2002).

Past research shows that most of the employees will leave companies for better

career and development opportunities, better payments package and job

satisfaction among other factors (Wanjiru, 2007). Hence, Organisation need to

ensure employees satisfaction to work and stay with the organisation (Kumar,

2013).

On the other hand, research also shows that employee engagement, organisational

culture, psychological ownership, and career development having significant

influences on staff’s talent management in term of talent retention in the

organisation (Frederick, 2014; Kibui, Gachunga, & Namusonge, 2014; Mayhew,

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Ashkanasy, Bramble, & Gardner, 2007; Olckers & Du Plessis, 2012; Phillips &

Connell, 2003; Jon L. Pierce, Rubenfeld, & Morgan, 1991; Stans, 2012; Tanton,

2007; Tharp, 2013; Villiers, 2006). Taking all these aspects into consideration,

organisation needs to improve their recruiting process to be more efficient and

identify high performers and successors to key positions throughout the

organisation to achieve organisation’s business objectives and needs. However, it

is challenging for the organisation to examine the talent of the organisation

currently without the implementation of talent management.

This research therefore seeks to identify whether there are any relationship

between employee engagement, career development, organisational culture,

psychological ownership and staff’s talent management in Service Industry.

1.3 Research Objectives

The research aims to understand the relationship between employee engagement,

career development, organisational culture, psychological ownership and staff’s

talent management in Service Industry.

Besides that, this research also aims to provide more information regarding the

staff’s talent management to the management group of the case company as talent

management has increasing importance in the competitive and modern business

world. Researcher also intends to discover more information in order to provide

finding for organisational in term of how they can improve in managing talent.

This research wish to achieve the following objective:

1. To understand the role of talent management in employee retention.

2. To determine whether talent management play a role in retaining talented

employees in an organisation.

3. To examine whether employee engagement, career development,

organisation culture and psychological ownership influenced staff’s talent

management in term of employee retention.

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1.4 Research Questions

The research questions have been established according to the needs of the case

company to understand more on the relationship between employee engagement,

career development, organisational culture, psychological ownership and staff’s

talent management in Service Industry.

The research aims to answer the following questions:

1. Does talent management play a role in talent retention?

2. What is the relationship and influences of Employee Engagement on

staff’s talent management in an organisation?

3. What is the relationship and influences of Organisational Culture on staff’s

talent management in an organisation?

4. What is the relationship and influences of Career Development on staff’s

talent management in an organisation?

5. What is the relationship and influences of Psychological Ownership on

staff’s talent management in an organisation?

1.5 Significant of the study

The progressively importance of talent in the modern, complex and competitive

business world has begun a need to emphasis on managing talent as an

organisational competitive asset (Gupta, Pike, & Roos, 2002; Nyanjom, 2013).

This study will be able to contribute to the organisation in term of how Talent

Management practices such as employee engagement, organisational culture,

psychological ownership and career development will be able to help the

organisation to retain talent workers (Kibui, 2015) as organisation is depending on

talented group of workers to transform its vision and mission into realism.

Staff’s talent management is crucial because organisation needs to understand and

have the right processes in place in order to develop and retain talent workers.

However, most of the organisations only locate more effort on attracting new

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talent to their organisation but overlook into developing and retaining talent (Rani

& Joshi, 2012). Hence, organisation should put more effort on maintaining current

talent employees. Organisation can grant more training and development

opportunities to the potential talent in order to retain talent to enhance competitive

advantage.

This research also intends to assess literature correlated to talent management and

the outcomes of talent management in talents retention as well as how

organisation can manage people in a consistent and measurable way so that the

talent can be develop through experiences by providing supportive working

environments, mentoring and supportive managers that provide feedback and

empowerment to ensure that organisation having better positioned to meet the

problems of the talent shortage (Kibui et al., 2014).

The study finding can help the organisation in evaluating the importance of talent

management in terms of the various talent management strategies including

learning and development, talent retention, and career management which will

help the organisation to improve on their organisational performance (Mangusho,

Murei, & Nelima, 2015).

In addition, this research attempted to understand the accomplishments and

challenges of staff’s talent management (Oladapo, 2014) and making

contributions to awareness on staff’s talent management in term of enhancing

talent retention. Moreover, researcher wishes to understand what determines

talented employee’s intention to stay or quit an organisation (Kibui, 2015).

As conclusion, it is important for the organisation to focus on talent management

nowadays and turn them into valuable asset for the company. Moreover, employee

engagement, organisational culture, psychological ownership and career

development will be able to help the organisation to retain talent workers. Hence,

organisation should take these important factors into consideration as it help to

improve the organisation’s performance.

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CHAPTER 2

LITERATURE REVIEW

Most of the organisations today are encounter the challenge of retaining their

talent employees persists in the global markets (Kibui, 2015; Schuler, Jackson, &

Tarique, 2011; Scullion et al., 2010; Tarique & Schuler, 2010; Wanjiru, 2007).

Thus, talented employees’ retention has become one of the critical concerns facing

by the organisations today. This is due to the lack of availability of skilled

employees, high employee turnover, competition and economic growth (Kibui,

2015).

Moreover, the employment relationship is currently experiencing significant

challenges where organisation struggle in developing, motivating and retaining

those talented employees. This has made the finding and talented employees’

retention becoming the major priorities for organisations (Fegley, 2006). Höglund

(2012) has also indicates that there is a short of empirical contributions,

examination and research regarding talent management area.

This research project is going to provide an overview of the related literature

review as well as introduces theoretical and practical aspects of staff’s talent

management in Service Industry with the relationship between employee

engagement, career development, organisational culture, psychological ownership

on employee retention strategy and how talent management play an important role

in employees’ retention and reduce unhealthy employee turnover.

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2.1 Employees Engagement

Employee engagement is defined as employees’ willingness to learn, concentrated

on the job, ability to perform at work, willing to participate themselves fully in

their roles, willing to put extra effort to achieve better outcomes and help the

organisational succeed, mainly by providing optional effort on sustainable basis

with in line with the organisation’s value and strategy (Peter Cheese, 2010;

Hellevig, 2012; Kibui, 2015; Towers Perrin, 2003).

Gibbons (2006) has defined engagement as heightened intellectual connection and

emotional that employees have for their organisation, manager, co-workers or job

which consecutively inspirations them to apply extra discretionary effort to their

work. According to Nasomboon (2014), employee engagement is also define as

the individual’s feeling of enthusiasm and satisfaction in work-related activities

for the organisation. The level of involvement and commitment of an employee

towards the organisation (Lindholm, 2013) will increases organisational service

quality and performance (Markos & Sridevi, 2010).

In addition, Towers Perrin (2003) has indicates that there is a relationship between

employees’ engagement and staff talent retention and consequently employee

engagement is essential importance to successful implement staff’s talent

management. Bhatnagar (2007) also viewed employee engagement as a significant

indication since it has been associated to increase retention of talent as an effect of

Talent Management processes.

Besides that, according to Glen (2006), employee engagement is the rationale

to retention of talent and Suharti & Suliyanto (2012) also believe that employee

engagement have positive impact on the organisation and becomes one of the vital

factor in the success of an organisation. White (2009) also emphasize that the lack

of “employee engagement” in an organisation would deteriorate workers long-

term commitment to the organisation, which will cause difficulty to develop, align

and retain highly talented employees.

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Talent Management strategy should contribute to employee engagement other

than contributing to the effective attracting and recruitment of employees.

Organisations then can further maximize and appoint their talent employees

through an effective Talent Management strategy which can clearly ensure a

competitive advantage. Nasomboon (2014) state that there is a statistical

relationship among employee engagement with enlargements in organisational

cost-effectiveness, productivity, job satisfaction where career contribution and

trust are considering the principal elements of organisational success.

According to Lindholm (2013), continuous motive the employee also inspiration

employee engagement. It is consider challenging to enquire employee to be

engaged to their job without motivation toward the job. On the other hand,

compensation and benefits, employee recognition as well as learning, training and

development will have positive impact on employee engagement.

Lunenburg (2011) also agree that if organisation able to meet employee

expectations toward their needs, it will positively affects employee motivation,

which will indirectly enhance employee engagement and job effort.

Cook (2008) research prove that engaged employees are feeling motivated by the

effort they are doing and they really care able the future of the organisation as

well as willing to work hard to make the organisation succeed. Cook (2008) has

divided employee engagement into four categories for further understanding

which are cognitive engagement, emotional engagement, physical engagement

and advocacy.

Cognitive engagement is referring to the degree to which the engaged employee

concentrations very hard on work and emotional engagement is referring to the

degree to which the engaged employee feels captivated in the work, while for

physical engagement, it is referring that the degree to which engaged employees

are willing to go extra mile, put their effort to complete the task (Cook, 2008).

Lastly, Cook (2008) classify advocacy as the extent to which the engaged

employees would recommend the organisation to their family and friends in terms

of job opportunities.

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Besides that, reasonable assessment of an employee’s performance also an

essential principle for determining the level of employee engagement and

motivate them to retain with the organisation (Kibui, 2015). According to Gallup

(2010), if an organisation has a great number of engaged employees, it will benefit

the organisation to attract new talented people to join the organisation. This has

support by Kular, Gatenby, Rees, Soane, and Truss (2008) that high number of

engaged employees enhance positive structural result.

As conclusion, employee engagement will have a significant influence on

organisational outcomes. Hence, one of the effective ways to retain talent is to

fully engage them in the organisation core operations and appreciate their efforts,

hard work and the level of involvement and commitment an employee has towards

the organisation (Bechet, 2008). Ologbo & Sofian (2013) has concluded that

employee engagement as a fundamental to the talent retention and might be a

powerful aspect for organisational achievement as it has a significant prospective

to have an effect on employee productivity, loyalty, and retention.

Therefore, effective staff’s talent management practices and policies that can

demonstrate the effort and commitment to human capital will resulted in more

engaged employees and lower turnover in the organisation (Lockwood, 2006).

Subsequently, employee engagement can create or trouble the organisation

outcome (Lockwood, 2006).

2.2 Career Development

One of the main factors of staff’s talent management in term of talent retention is

the provision of training and career development opportunities (Chitalu, 2011).

Career development is significant for talent employee retention where if

organisation desires to reinforce their bond with their talented employees, they

must spend some effort on development of employees (Hall & Moss, 1998). These

can also ensuring that talent with the experience and qualifications are available

when organisation needed (Kibui, 2015).

15

Learning and development programs are fundamental modules in the process of

Talent Management, which emphasize on growth and development as main

elements of business strategy that help the organisation to ensure and enhance the

people attain with the skills and competencies they need (Armstrong, 2014).

Woodruffe (1999) propose that an organisation should not only involve the

establishment of opportunities for promotions for the talent employees within the

organisation but correspondingly also providing opportunities for skill and training

development which enable talent employees to improve their employability in the

labour markets (Wanjiru, 2007).

On the other hands, talented people are also searching for the opportunities to

learn, prospect of personal development and professional growth as well as the

challenge of new role and responsibilities (Wagner, 2000). Thus, an opportunity

for continuous learning considers significantly for many worker which will affect

their decision whether to accept or remain in a role or position (Kibui et al., 2014).

Therefore, talented employees keep on emphasizing career development activities.

Organisation can also treat career development process as a form of internal hiring

which help the organisation to retain talented worker and save cost from advertise

and recruit individuals that are unfamiliar with the organisation (Abiodun, 2011).

The employees also have the chance to plan their career and grow with the

organisation by realizing their full potential for the benefit of the organisation

(Abiodun, 2011). Employees in general will react positively toward advancement

opportunities and career development (Kibui, 2015).

Career development is the series of on-going activities in the organisation which

involves training on new skills, making a career change within organisation to

attract and retain to stay in the organisation for a long period (Kibui et al., 2014).

Nowadays, the talented people are having a strong desire and very ambitious to

succeed. They are expecting a high development of their career and demanding

the assistance from the organisation to accomplish that development.

Consequently, talented employees will only stay longer in the organisation if the

organisations are able to provide them every opportunity to develop their potential

(Kibui et al., 2014).

16

According to Frederick (2014), career development is consider as one of the

fundamental points in attracting, developing and retaining talent in the

organisation. When organisations offer career development opportunities for their

talent to enhance their career, it will enhance the trust, motivation, improved

commitment, and high retention rate. If the organisation ensures the employees

meet their individual needs, it can increases employees’ loyalty and restrict

employees from leaving the organisation (Kibui, 2015).

Moreover, creating career opportunities for talented employees is a key strategy

for a successful talent management system where it has benefit both organisation

in term of creating and retaining a talent pool for competitive advantage and

employees in term of their individual career development and progression

(Frederick, 2014). Succession planning programs and internal career development

will keeping valued employees and link them with the organisation (Wanjiru,

2007) for looking opportunities to challenge of new responsibilities, learn new

skills and professional growth (Wagner, 2000)

In order to achieve success in career management, three aspects are needed for

talent management. They are cooperation from employers or managers and

employees, career path planning example self-assessment, identification of career

advancement interests and development needs. An employer is able to identify an

employee’s goals and achievement with career opportunities in the organisation,

thus the employer is able to utilize the employee’s professional interest in the

organisation (Tanton, 2007).

2.3 Organisational Culture

Organisational culture is the way that employees perform their daily job activities

in an organisational environment. Talent management emphasises that a good

retention of an organisation’s most dynamic workforce must have a positive

organisational culture. This culture must be able to connect and influence the

employees to their companies and stay engaged to their jobs (Phillips & Connell,

17

2003). Hence, when organisation do recruiting, organisation core values must

clearly defined to the employees and incorporated it with organisation vision,

strategy and goals (Wanjiru, 2007).

Organisational culture also consists of unwritten rules, norms, ideas, concepts,

beliefs and values which generally process and follow by the employees (Erdem

& Keklik, 2013). Strong culture in an organisation can enhance employee

motivation, creates goal alignment, and controls to improve organisational

performance (Wanjiru, 2007).

According to Stans (2012), organisational culture have good impact on talented

employees retention by enabling the growth of talent opportunities faster. Talent

management process is subjected to influence by organisation culture as Leader-

Managers must be able to direct, operate and plan in a different culture (Stans,

2012). Generally, employees’ behaviour patterns such as what to believe, how to

feel, how to react are most strongly influenced by the management team or leaders

of the organisation (Wambugu, 2014).

A well balanced work-life, good leadership, two ways communication,

recognition and social support are one culture that should be adopted (Frederick,

2014).

2.3.1 Leadership style

Leadership style is considered as culture driven (Kumar, 2013). Leaders and their

expertise contribute in creating a culture which escalating of talent retention in

which talent stay in an organisation to follow a good leader (Wanjiru, 2007). On

the other hand, this also usually drives the talent away if the leader is not capable

enough.

Employees willing to come to work every day and they smile, laugh, having fun

and are productive while at work when the organisational culture is good and

there is a trust relationship between the superiors and the subordinates, it lead to a

18

high employee engagement and enhance the talent retention in the organisation

(Tammy, 2002).

Therefore, organisation must realised leaders and their leadership skills in forming

a culture of talent retention. Pass researcher also conclude that organisational

culture are more important compare to the job itself and people tend to leave

managers and not the companies (Wanjiru, 2007).

2.3.2 Communication

Pass researchers have established that communication between superior-

subordinate are significant in influencing talent employees job satisfaction in the

workplace and their intention to stay or leave the organisation (Raina & Roebuck,

2014; Stevens & Hilse, 1996). Individuals who dislike intensely and assume

negatively about their superiors are less willing to communicate or be inspired to

work and most likely will think of leaving the organisation (Stevens & Hilse,

1996). Hence, the two ways communication between the superior with

subordinate or organisation with employees are crucial to employee retention.

Wanjiru (2007) stresses that human resource management need to communicate

over and over again with the employees to ensure that the organisation core values are

well-defined and integrated into the organisation vision, goals and strategy. This was

the first step in employee retention.

Besides that, accepting feedback and maintaining sincere communications are also

one of the characteristics of employee retention strategy. Organisation can work to

develop areas of dissatisfaction through interviews or communicate with disaffected

employees, such as improve the employee benefits. Organisation can create a culture

of loyalty that minimises the risk of turnover by spending some time to listen to

the employees’ need.

19

2.3.3 Reward and Recognition

Employees perform the daily task because they believe it's the right thing to do

and they feel that they will be rewarded for their actions with a strong

organisational culture (Wambugu, 2014).

Pay-for-performance systems have a significant impact in talent retention which

organisation rewarding employees and reinforcing positive behaviour for their

contribution to organisational success (Luthans, 2000).

When an organisation recognize employee effort and willing to invest in training

program for the employee for employees personal or professional development, as

well as compensated monetarily to their hard work, the employee is more likely

will continue to stay with the organisation.

2.4 Psychological Ownership

Psychological ownership is a positive resource and the ability of an employee to

take a personal ownership which concerning a particular task, procedure, and

process that impacting their performance and relationship in the organisation

(Kaur et al., 2013). Psychological ownership is theoretically different from

organisational commitment, being inspired by work, job satisfaction or having the

job as a fundamental life interest; it is about an exceptional characteristic of the

individual familiarity in organisations.

As the ‘war for experienced talent’ escalates, there is a need to developing

psychological ownership in employees (Villiers, 2006). When talent employees

experienced feeling of psychological ownership in an organisation, which feel the

need of belongingness to be in the right career position can be fulfilled by a

particular job, work unit, work team, division, organisation or industry as a whole.

They tend to participate in positive behaviours determined by the sense of

accountability associated with feelings of psychological ownership. Thus, it

happens to be increasingly essential to investigate the psychological issues that

20

influence employees’ loyalty and commitment with the intention that

organisations able retain their talented skilled employees easily (Villiers, 2006).

Besides that, the satisfaction of sense of belonging and needs will guide them to a

certain level of psychological ownership which the consequence is either a

positive or a negative behaviours (Olckers, 2015). This also will impact on talent

employee’s intention to quite or stay with the organisation. According to Olckers

& Du Plessis (2012), managing psychological ownership can have positive effect

and behavioural outcomes which can encourage organisational success and

effectiveness and subsequently sustain talent retention.

Psychological ownership also has the ability to make employees to think and

perform like owners which willing to take an ownership view of responsibilities

and work related tasks that can in return enhance organisational success and

effectiveness and subsequently sustain talent retention (Avey, Wernsing, &

Palanski, 2012).

Brewer (1993) has indicated that the model of work inspiration suggests that

people basically begin with both psychological and social needs on circumstance

that they are well compensated. With that, contemporary organisations can have

talented employees who are keen and proficient to invest themselves completely

in their roles, who are psychologically associated to their work, who are

committed and proactive to high quality standards. This will also indirectly

increase the rate of talent retention.

Furthermore, Mayhew et al., (2007) and Pierce et al., (1991) also emphasize that

organisations can gain advantages from managing psychological ownership as it

can inspire talent employees to achieve at high levels and even encourage them to

involve in extra-role conducts. According to Pierce, Kostova, and Dirks (2001),

psychological ownership was consist of cognitive and affective elements and

strictly associated to individual’s identity as well as satisfies three basic human

needs which are self-efficacy, self-identity and belongingness.

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2.4.1 Self-efficacy

Self-efficacy is referring to the employees’ assessments about their ability to

perform tasks (Bandura, 1997). The possibility of being capable to influence a

desirable result of actions and being intelligent to do something with concern to

the environment are very significant in creating the psychological ownership.

Furby (1978) describes ownerships as part of the extended nature and are

significant to the employees because psychological ownerships assist them to

implement control over the physical situation as well as over other employees.

2.4.2 Self-identity

The following drive that strengthens psychological ownership is the essential for

self-identity. Pierce, Kostova, and Dirks (2003) recommended that employees able

to use psychological ownership to express themselves, to precise their self-

identities to the others and to sustain their stability through the period of time.

Self-identity is also referring to the employees’ interaction with others things such

as purpose, mission or organisation that the employees will have the sense of

identity with being recognized, sustained, reproduced and changed (Dittmar,

1992).

Rousseau (1988) summaries that employees begin, sustain, replicate and

transform their self-identities by socialise or interacting with others such as

intangibles like organisations, missions, visions or purposes. Consequently, it is

essential to ensure that all the employees have clear defined goals and aims which

they know precisely what their organisations expect and believe of them.

22

2.4.3 Belongingness

The meaning of belongingness in terms of psychological ownership in an

organisations, it referring to employees share the common goals with others and

they having the feeling that their current job function is fulfilling their personal

requirements as well as they feel they belong to the organisation (Edwards, 2005).

Shamir, House, and Arthur (1993) state that talent employee’s feelings of

commitment, power, involvement, performance and cohesiveness are boosted by

the transformational of management style in the organisation. Yukl (2012) defined

transformational management style as the leadership behaviour that changes the

values and norms of talent employees, inspiring them to achieve beyond their own

prospects. Strong relationships between the superior and the employees will also

enhance employees’ sense of belongingness in the organisation. If the employees

experienced and perceived that the management are going to understand, listen

and attend to their needs, their spirits of ownership will be boosted and prevent

them from engaging to other organisation (Avey, Avolio, Crossley, & Luthans,

2009).

2.5 Talent Management

According to McDonnell (2011), talent management is consider one of the most

vital factors in ensuring sustainable organisational achievement which offer

various benefits such as improved employee engagement, alignment to tactical

goals with the purpose to identify the potential leadership of the organisation,

culture of quality and much more (Ballesteros, 2010).

Mohammed (2015) also have the same view that talent management is consider as

a set of tactics and structures to increase efficiency by initial enhanced processes

for attracting, developing and retaining talents with the vital expertise and ability

to meet existing and future business needs and success.

23

In addition, talent management is also an action taken by the organisations with

the intention to attract, develop, and retain the talent workers in the most tactical

roles (Scullion, H. & Collings, 2011). Talent management can be summarize as

part of the corporate strategy to accomplish the mission and vision of the

organisation (Ballesteros, 2010) as well as the ability of talent management in

attracting and retaining talent which has been promptly becoming one of the

significant concerns for the organisations across the globe (Hiltrop, 1999).

An effective Talent Management strategy and program must be aligned with the

organisation’s mission, vision, culture and overall policy as organisation is

depending on a talented pool of employees to transform the organisation’s vision

and mission into reality. Hence, talent management plays an important role in

effectively manage and retain the talent workforce in the organisations which is

the objective of human resource management (Frederick, 2014).

Besides that, Gubman (1988) also comment that the increasing effect of global

competition, complex information economy and demographics change is

compatible to form a new business era, which is talent management. In addition,

Evans, Pucik, & Bjorkman (2002) also emphasize that there is no lack of talented

people in this world; but there is always a deficiency of the right talent in the right

place at the right time. Talent management practices will also have significant

impact on organisational outcomes such as enhanced competitive advantages,

increase company attractiveness, achieve organisational business goals as well as

increase customer satisfaction.

On the other hand, Cheese (2008) has identified skilled employees can generate

high performance through talent management which sequentially attracts new

talent, creates the capitals to reward it and initiative enhancements in productivity,

innovation, quality as well as customer satisfaction.

24

2.5.1 Defining the Talent Management

According to Farley (2005), talent management is defines as the actions that

include all necessary talent processes to “optimize” employees in an organisation

which take into consideration of performance management, succession planning,

talent selection, career development, development planning and support,

recruiting and workforce planning. Talent Management can conclude as assigning

the right talent in the right job at the right place.

Talent management also focusing on the ability to retain and develop talents as it

can positively affect employees’ retention in organisations (Frederick, 2014).

Generally, talent management is the execution of incorporated systems or

strategies premeditated to enhance workplace efficiency by increasing developed

procedures for attracting, developing and retaining talent with the essential skills

and ability to meet the existing and upcoming business needs (Lockwood, 2006).

With that, talent retention has becoming a major component and driver of talent

management (Oladapo, 2014).

Moreover, an effective Talent Management practice can also have a significant

influence on human resource outcomes such as increase employees’ job

satisfaction and engagement, high level of motivation and commitment as well

psychological ownership and trust in leaders.

On the other hand, Evans et al. (2002) given a more complex definition of Talent

Management which is Talent Management act as the contemplate actions to attract,

develop, and retain those individuals who have the capability to make a

substantial impact on the outcomes of the organisation.

In this research, Talent Management was a set of processes and function of

strategic management concerning the motivation for superior performance to build

up the trust between management and the employee, training and development for

the talented employees, performance reviews, job enrichment (variety of jobs) and

attraction of talent as well as the opportunities for promotion to increase the

employees engagement and enhance the employee retention (Tanton, 2007).

25

2.5.2 The importance of Talent Management

According to Stans (2012), talent management has becoming so important where

organisations are forced to go wherever the talent is and organisation’s

performance seems to be increasingly reliant on its employees’ skills and

expertise. Effective talent management has become the fundamental to achieving

organisational excellence and function as a driving force for the business

accomplishment (Tanton, 2007).

The researcher has encouraged the need for managing talent and Bhatnagar (2008),

also argues that talent employees have become the vital differentiator for Human

Resources Management as leveraging competitive advantage. Organisations have

to fully utilize Talent management to understand their employees better as well as

retain the talent for their competitive advantage and benefits (Zorlu, 2009). It is

also strongly supported by Boudreau & Ramstad (2007) that the essential to

effectively manage talent has been harmonized with talent metrics.

Zorlu (2009) and Frederick (2014) also have highlighted that the importance of

talent management and the benefits of talent management which are talent

management assist the organisation getting the right talent in the right job,

retaining the top talents, understand their employees better as well as gaining

competitive advantages compare to those organisation that do not maintain talent

management practice.

2.5.2.1 Understanding employees better

An effective talent management system or practice able to helps the organisation

to understand their employees better. Besides that, management able to understand

employee skills, knowledge and experience through talent management and place

them on the right jobs to maximize their talent for high performance (Zorlu, 2009).

Moreover, management is easier to determine what to motivate their employee to

enhance their engagement by understanding their development needs, abilities,

career aspirations and weaknesses (Frederick, 2014).

26

Furthermore, organisation also needs to look into the employees’ compensation

and benefits to reward and retain top talent such as guaranteed base salary,

performance bonuses, health and retirement benefits (Abiodun, 2011). Pass

researcher Belcher (1978) states that most of the employees willing to continue

the relationship they have with employer if variables of compensation and benefits

is being priorities by the organisation (Abiodun, 2011).

Lastly, the organisation’s ability to support employees’ work-life balance, it will

definitely an important value that is assessment by the employees as this have

significant impact on how individuals assess their career results (Abiodun, 2011).

2.5.2.2 Getting the right person in the right job

Organisations are able to identify their human resource talents capability with

talent management as well as identified the talents lacking within the organisation.

Organisations will try to get the right talents and skills through recruitment and

selection by understand what talents or skills are obtainable and those that are

needed but not existing in the organisational (Zorlu, 2009).

Frederick (2014) also agree that when these new talent deployed and positioned in

the organisation with the right jobs will increase their productivity and efficiency

as well as increase their job satisfaction when there is a better arrangement

between employee interests and the job profile.

2.5.2.3 Retaining top talents

According to Frederick (2014), organisation can effectively plan their retention

strategies with talent management practice through better recruitment standard

and talent selection, provide and enhance training and development as well as

having an effective compensation system.

27

Retaining top talents in the organisation is considered very crucial in securing a

competitive market stance for the organisations. Organisations who fail to do so

are at the verge of losing out to their competitor as well as the market share (Zorlu,

2009). This is due to long-tenured employees will have established close

relationships with their colleagues and customers, if they are leaving the company,

it will have impact on the organisation morale (Meyer, 2005) and issue with

regard to the interactions between employees and customers (Olckers, 2015).

Organisations also have to deal with the risk that new hired employees will not fit

the organisation culture or perform as expected (Meyer, 2005). Hence, retaining

top talents can have constructive result on good customers’ relations and

ultimately enhance organisation profitability (Meyer, 2005).

2.5.2.4 Competitive advantage

Zorlu (2009) clarify that employees are an organisation’s most valuable asset

which organisation musts effectively manage them. The effectively talent

management will help the organisation to create competitive advantages through

engaging the employees in the organisation. Mackay (2007) state that if the

employee leave the organisation and join their competitor, it drive a clear message

that there are something more attracting about their competitor. Hence,

organisation needs to look into this issue seriously.

The talent management strategy will focus on five primary areas which are

attracting new talent, selecting suitable talent, engaging, developing and retaining

the current talent employees will drive the organisation to gain the competitive

advantages (Lockwood, 2006).

28

2.5.3 Staff Talent Management in term of Talent Retention

Retention is classify as a concept which is complex and difficult to define as to an

overall theory of cognition and the mind mooted by psychological views with the

concepts of employees’ engagement, motivation, identification and commitment

(Collings & Mellahi, 2009; Larsen, 2012). Retention is also a deliberate progress

by an organisation to generate an environment which able to inspire employees to

stay in the organisation for the maximum period or engages employees for long

term. While talent employee retention is describe as the organisation’s ability to

retain those employees that they want to keep longer than their competitor

(Wanjiru, 2007).

Nowadays, many organisations facing issue in retaining productivity talent

employees. Seeing that employees are consider the most valuable asset to the

organisation as the sustained achievement of any organisation is reliant on the

employees’ commitment and contribution (Baum & Kokkronikal, 2005), this is

also due to when talent employee leaving the organisation, they will often bring

with them their expertise and valuable knowledge gained through experience

(Olckers, 2015). Hence, talent retention is critical to the persistent success of any

organisation and they are trying their best to avoid losing any of their key

performers.

When organisation is going concern with the employee retention, it is essential for

the organisation to considerate the factors that constrain the loyalty and

commitment among employees to manage the turnover risk ahead (Royal, 2011).

An organisation’s talent retention strategies also need to include the information

or reasons why people leave the organisation.

The main business objective of an employer is their effort in employees’ retention

such as ensuring potential workers to stay to meet business output or demand

(Walker, 2001). To have engaged and committed employees, an organisation must

have leadership and equal opportunity and direct magnetic force or influence of

managers (Tanton, 2007). In other words, talent employee retention is referring to

29

the capability of an organisation to develop and retain its talent employees (Kibui,

2015).

Furthermore, talent retention is consider a major component of talent management

which incorporated with talent management activities to ensure that the

organisation are able to attracts, retains, motivates, develops and retain talented

people it needs currently and future (Kibui, 2015). Staff talent retention

management is a development that places an emphasis on the beliefs of talent’s

commitment and loyalty (Abiodun, 2011). Talent turnover can be minimize if this

strategy able to effective manage in the workplace (Abiodun, 2011).

Moreover, most of the research shows that the relationship between organisational

culture, employees engagement, employees career development, psychological

ownership and staff’s talent management will have some influences in the

organisation talent retention (Frederick, 2014; Kibui et al., 2014; Mayhew et al.,

2007; Olckers & Du Plessis, 2012; Phillips & Connell, 2003; Jon L. Pierce et al.,

1991; Stans, 2012; Tharp, 2013; Villiers, 2006).

2.5.4 How Talent Management Managing Retention

According to Tanton (2007), talent management provide personal and career

development opportunities for employees to fully utilize their talents. Excellent

career opportunities are one of the important factors that influencing a talent

employee’s decision to leave or to stay. Frank, Finnegan, & Taylor (2004) also

highlighted that leadership training, employees’ engagement training, will makes

a difference in employees retention.

Talent management is an overwhelming Human Resource Management practice

that seeks to distinguish employee talents, develop them and to build the talent

capacity as long as competition in business operations and industry is concerned

(Frederick, 2014). Talent management also do recognizes that different

individuals have various but kind contributions which achieve success for an

organisation (Forman, 2005).

30

Talent management play an important role in identify the correct retention

strategies in order for the organisation’s employees perceive to be efficient such as

practices in the area of reward and compensation to increase the employee

engagement. In addition, supervisors’ support, career development, organisational

culture and working environment which also help to develop talent retention (J. P.

Meyer & Allen, 1991; Snell & Dean Jr, 1992; Solomon, 1992).

Talent Management also ensures that organisations can successfully develop and

retain essential talent by understands their employee well. The lack of the

opportunities in internal development and promoting contributes to attrition as

well, but organisation can fight for it by providing a clear configuration for talent

development in order to retain their talent (Evans et al., 2002).

Besides that, talent management also provides training to the managers in term of

talent retention and engagement as it has direct impact on the talent retention and

Human Resource professional always argue that “people don’t leave companies,

they quit bosses” (Evans et al., 2002), this show that the quality relationship

between the management and the employees are very important and line manager

are responsible to giving recognition, providing feedback, coaching, offering

growth opportunities to their talent employees (Evans et al., 2002).

Moreover, when the employees are allowed to take psychological ownership with

the jobs that they do in the organisation; they will understand what their role is

within the organisation. They will and strive for excellence in that role and are

concern about the future and the success of their organisation (Tammy, 2002).

Lastly, organisation should also enrol in talent management practice such as

having a strong reward and recognition culture, offered training and education

support for the talent, increase the compensation system and enable employees to

have a work life balance to discourage resignation as well as increase their

engagement towards the organisation (Evans et al., 2002).

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2.6 Conceptual Framework

In this study, the independent variables were Talent management strategy and

practice which include employee engagement, career development, psychological

ownership and organisational culture. This research wish to understand how these

independent variables influenced on employee retention which was the dependent

variable.

Figure 1: Proposed Conceptual Framework

Employee

Engagement

Career Development

Organisational

Culture

Psychological

Ownership

Talent Management

(Talent Retention)

Independent Variables Dependent Variable

32

2.7 Research Hypotheses

Based on the research, researcher is able to identify the following hypotheses:

H10: There is no significant relationship between Employee Engagement and

staff’s talent management in term of talent retention in an organisation.

H11: There is significant relationship between Employee Engagement and

staff’s talent management in term of talent retention in an organisation

H20: There is no significant relationship between Organisational Culture and


H21: There is significant relationship between Organisational Culture and staff’s

talent management in term of talent retention in an organisation.

H30: There is no significant relationship between Career Development and


H31: There is significant relationship between Career Development and staff’s


H40: There is no significant relationship between Psychological Ownership and


H41: There is significant relationship between Psychological Ownership and


33

CHAPTER 3

METHODOLOGY

This chapter is going to discuss the research design, methodology used, sample

and procedure in the study as well as data collection procedure and technique used

for this study in order to evaluate the relationship between organisational culture,

employees’ engagement, employees’ career development, and psychological

ownership with staff’s talent management in term of talent retention.

3.1 Research Design

A research design is an approach for gathering data about the information desired

as well as the preparation to obtain the answers for the research questions. In this

study, researcher wishes to find out whether the relationship between

organisational culture, employees’ engagement, employees career development,

and psychological ownership with staff’s talent management in term of talent

retention. Hence, descriptive survey design was adopted since it helps to identified,

described and understand the characteristics of a group of people in a given

situation for further research (Mokwaro & Abok, 2014).

Descriptive survey design facilitates the researcher to organize and summarize

data in a more effective way by reducing data to an understandable form and

provides tools for describing compilations of statistical observations. The survey

was centred on Star Cruises Administrative Services Sdn Bhd. Staff’s talent

management was measured using parameters of the relationship between

organisational culture, employees’ engagement, employees career development,

and psychological ownership.

34

According to Patel & Davidson (2003), quantitative research is define as a

research method that involve measurement of data collection and statistical

processing, while for qualitative research method is focusing on the qualitative

interviews and interpretation as well as the verbal analysis of findings. Qualitative

data analysis will be focus more on thematic analysis and relied on basic premises

of content (Boyatzis, 1998; Weber, 1985). In this research, the most suitable

quantitative research approach is using survey method to select participants for

our study (Oladapo, 2014) as questionnaires can be used to measure

characteristics, awareness, attitudes, and behaviour.

According to Bryman & Bell (2003), quantitative research has some advantages

compare to qualitative research in term of administration, time and cost, no

interviewer variability, absence of interviewer effect or convenience for

respondents. In fact, quantitative research was cheaper compared with qualitative

research. However, quantitative research also has disadvantages which are ignores

a very important human element such as respondent’s emotions, behaviour, and

feelings.

Besides that, it is also very important to aware the disadvantages of self-

administered questionnaires which include difficulties of communication errors

and non-response bias (Mitchell & Jolley, 2001). Problem of non-response will

lower down the return rate of questionnaire and error communication might lead

to misunderstood questions are answered incorrectly or omitted. However, this

can be overcome as long as respondents has a contact email address for queries

and researcher can follow up with respondents via email on questions that were

omitted or answered incorrectly before data processing. This will indirectly

increase the validity of the data collected (Mitchell & Jolley, 2001).

In this study, a self-completion closed-end type questionnaire was developed

based on review and analysis of literature available in journal publication

databases and distributed to the employees of the organisation via email for the

sample and collected different opinions and ideas from the employees towards the

relationship between organisational culture, employees engagement, employees

35

career development, and psychological ownership and how it play a role in

retaining talented employees in an organisation.

This questionnaire used with focus on the interpretation of the data. Researcher

has chosen quantitative research method in this study mainly due to time and cost

saving as well as aims to find out what the existing situation in the organisation is.

The other reason is to ask the employees of Star Cruise the same questions to

gather their personal view and opinion, hence, personal interviews is not suitable

(Lindholm, 2013).

3.2 Sampling Design

3.2.1 Target Population

This study is focusing on talent management with organisational culture,

employees’ engagement, employees’ career development, and psychological

ownership play a role in retaining talented employees in an organisation. The

target population is to identify those elements that which the findings of the

research intended to generalize. Hence, the target population of this study consists

of staff and management of Star Cruises Administrative Services Sdn Bhd as well

as those crews that work on the cruise. This study was relied on the primary

sources of data required from respondents through filling of questionnaires.

3.2.2 Sample Size

Sampling framework is which a sample has been drawn to represent the actual set

of units (Mugenda & Mugenda, 2008). Researchers normally will make use of

sampling method to save time and resources as it is often too expensive and

unrealistic to study an entire population. Burger & Silima (2006) mentioned that

the most significant reason for sampling is feasibility. The sample size of around

100-150 of the whole employees of Star Cruises Administrative Services Sdn Bhd

36

was chosen for this study from the organisation in view of the objectives as well

as limitations of this research.

3.2.3 Sampling Technique

According to Hair, Black, Babin, and Anderson (2009), there are two sampling

method in gathering sample which are probability sampling and non-probability

sampling. In this study, non-probability sampling method will be used in the study

to analyse the information’s as non-probability sampling is well-defined as a

sampling technique that not all element of the target population has a chance of

being selected.

Convenient sampling that under non-probability sampling is used in this research

which refers to the way of sample selection which gives each respondent through

internet based survey and it will be send through email to the employee of the

organisation. The email could be disseminated to any employees in the

organisation at the convenient. The selection of the respondent is not restricted to

a particular age or gender group.

3.3 Data Collection Procedures

Data has been collected from both primary and secondary sources. The primary

data was collected from Star Cruise employees in different departments including

the officer, executive and manager through the questionnaire.

While for secondary sources of data was collected from published reference

materials such as various books, magazines, online journal, and general website.

The entire online sources of data collection are preferred accordingly to analysis

from various references and their reliability check (Kaur, 2013). In addition, some

of specimens of organisation and company website are also referred in this study.

37

Data collected through questionnaire was subjected to critical analysis and

assessments to enable the researcher come out with findings. Quantitative tool

such as Statistical Package for Social Scientist (SPSS) will be used to critically

analyse the data collected.

3.4 Data Collection Method

The researcher using a quantitative research approach by a self-administered

questionnaires electronically via email to the sample population of employees at

the company and ten calendar days was given to the respondent for completed the

questionnaires and returned it back to the researcher. The online questionnaires

survey was estimated to take twenty minutes in duration to complete. Everyone

will be answering the same set of question and all the survey responses were

treating it as completely anonymous for individuals even though some

demographic information being asked at the beginning of the questionnaire.

Quantitative research methods are measure on the variables that was governed by

structured questionnaire and characterized it by the gathering all the information

which can easily be analysed numerically, the results of which are in general

obtainable using statistics, graphs and tables. Besides that, quantitative research

methods have the benefit of able to distribute the questionnaire online to a huge

number of people at a very low cost and collect it back in short period of time.

Moreover, respondent were allow to replying the answer by email and

confidentiality was guaranteed in all requests and individual personal information

were not requested when answering the questionnaire. Furthermore, the results of

quantitative analysis which can be analysed numerically can confirm or refute the

hypotheses researcher pre-determines. However, a careful questionnaire design is

essential and the questionnaire need to be appropriate, address specific objective

and clearly explained to respondent of the data, if not, quantitative data collected

will be meaningless and too difficult to measure.

38

Lastly, a self-administered questionnaires provides a standard format that could be

recorded and analyse. Quantitative researchers can assigns numbers to

observations and use statistical correlations to explain how variables interact with

each other, data is produced by measuring and counting objects (Brynard &

Hanekom, 1997).

3.5 Research Instrument

This study utilize self-examine closed-end type questionnaire as the instrument to

collect data to analysis on the correlation between organisational culture,

employees’ engagement, employees career development, and psychological

ownership with staff’s talent management in term of talent retention. The

utilization of questionnaires enables researcher to collect huge set of data with the

same set of questionnaire from the sample provides uniformity and

standardization in the data gathering process (Kumar, 2013).

A closed-ended questionnaire was prepared with two major components; namely

Demographic Information and closed-end questionnaire on talent management

practices such as organisational culture, employees’ engagement, employees’

career development, and the psychological ownership on talent retention. The

questionnaire has been accurately organized in order to cover all the detailed

information required for the study (Kaur, 2013).

Demographic Information was used to analysis the data from different

demographic background while the questionnaire in part two was to gather the

responded data with regards to staff’s talent management and retention as well as

determine the approach and perception of the sample population to different

aspects using a Likert scale (Tanton, 2007). This study is attempting to capture the

responses from numerous demographic groups of Star Cruise’s employees.

Besides that, the questionnaire was designed from the ideas of other researchers

(Cook, 2008; Elegbe, 2010; Kibui, 2015; Kumar, 2013; Miner, n.d.; Olckers & Du

39

Plessis, 2012; Rutledge, 2005; Tiwari & Shrivastava, 2013; Vizzuso, 2015;

Wanjiru, 2007; Wolf, 2012).

3.5.1 Questionnaire design

The questionnaire design was divided into three sections ( referring to Appendix

A) which are section A consists of demographic information, Section B regarding

the general attitude towards the organisation and Section C with the sub-sections

that related to the staff’s talent management including organisational culture,

employees engagement, employees career development, and the psychological

ownership. Researcher will take into consideration on the length of time the

employee had worked in the organisation and their intention to stay with the

organisation.

3.5.2 Defining the questions

The design of the questionnaire was decided based on the literature review and

consideration of secondary data in order to ensure the reliability and validity of

the content (Kumar, 2013; Olckers & Du Plessis, 2012; Tiwari & Shrivastava,

2013; Vizzuso, 2015; Wanjiru, 2007). Most of the question were adapted and

modified from previous research and have been tested by the author in previous

study; hence it can be seen as valid questions in this study (Lindholm, 2013; Wolf,

2012).

The questionnaire was divided into three sections with containing 49 questions

which used as the measuring instrument. The components of the questions were as

follows: demographic information (6 questions), talent management in term of

employees attitude toward the organisation (3 questions), organisational culture

(10 questions), employees engagement (10 questions), employees career

development (10 questions), and psychological ownership (10 questions).

40

Section A: Demographic Information

This section of questions contained six extensive categories in which respondents

were requested to answer, namely; gender, age, department, designation job level,

educational level and number of years employed in Star Cruise. The major

rationale behind asking respondents to indicate their demographic information

was to enlarge an understanding of the target population (Abiodun, 2011).

Demographic

Question

Explanations

Gender (Abiodun,

2011)

The research respondents were requested to select their gender

Age (Abiodun,

2011)

The second demographic category that respondents were requested

to state was their age. Five age categories were provided for them to

choose from

Department Nine department categories were provided for respondents to

choose including Finance, Human Resource, Marketing, Marine

Operation, Purchasing, Crew Operation, Tax, Information

Technology and others.

Designation Job

Level

Three designation job level categories were provided for

respondents to choose which are between the range of officer,

executive and manager

Education Level

(Abiodun, 2011)

The fifth demographic category which respondents were requested

to state was their highest level of education. Five options were

provided in which participants had to select their highest

educational level.

Years of Services

in the company

(Abiodun, 2011)

Research participants were asked to indicate the number of years

that they have been employed in the Star Cruise. Participants were

provided with seven options.

Table 1: Demographic Information questions

41

Section B: General attitude towards the Organisation

This section required respondents to answer questions regarding their general

attitude towards the organisation and understand the current situation of the

organisation staff talent management in term of talent retention.

Questions Explanations

What are the

characteristics you

desire most in a job?

This question is to understand what characteristic can retain a

talented employee. The questionnaire was adopted and modified

from a study done by Wanjiru (2007) and Grubb (2006).

Which one of the

following categories

best describes your

current situation?

This question is to understand whether the employee has the

intention to leave the organisation. The respondents were

provided with three random options and require choosing the

one most appropriately described the way that they felt towards

their working situation (Abiodun, 2011).

What are the

characteristics that

most often effect your

decision to leave a

job?

This question is to understand what characteristic will influence

employee to leave their current employer. Whether it is related

to staff’s talent management. The questionnaire was adopted

and modified from a study done by Wanjiru (2007) and Grubb

(2006).

Table 2: Question regarding employees’ general attitude towards the organisation

Section C: Five-point Likert-Scale Questionnaire

This section required respondents to answer questions regarding the relationship

of organisational culture, employees engagement, employees career development,

and psychological ownership with staff’s talent management in term of talent

retention and rate the level either or not agree follow the Five-point Likert-Scale

to which the following statements from organisational culture, employees

engagement, employees career development, and psychological ownership would

influence respondents (employees of Star Cruise) decision whether to stay or

leave the organisation.

42

A: Employee’s Engagement

Total 10 questions to look into different part of employee engagement to further

evaluate the staff’s talent management in Star Cruise in order to determining the

level of employee engagement and better manage employee’s expectations and

make the talent management strategies to be more effective. Cook (2008) has

divides employee engagement into four categories which are cognitive, emotional,

physical, and advocacy. While Rutledge (2005) has been emphasize on employee

commitment and their attraction to work.

The questions below were adapted and modified from previous research and cover

most of the categories mention by previous researcher (Armstrong, 2006, 2014;

Cook, 2008; Elegbe, 2010; Lindholm, 2013; Rutledge, 2005; Wolf, 2012) Below,

the questions are introduced based on the each theme or categories that define the

question.


I feel committed to this company Commitment (Cook, 2008; Rutledge, 2005)

When I am at work, I enjoy working

intensively

Attraction to work (Rutledge, 2005; Wolf, 2012)

It is important to me personally to see

this company succeed

Care about the future of the company (Cook,

2008)

At work, I usually feel full of energy Cognitive: referring the degree to which

employee focus on work, high energy (Cook,

2008; Wolf, 2012)

I honestly think this is a good

company to work for

How positively one perceives the company

(Cook, 2008)

I am proud of the work I do. Advocacy: do employee willing to recommend

the company and show pride to others (Cook,

2008).

I would recommend the company to

potential new employees

I am ok with doing some extra work

to get the project done in time and

well

Physical: is referring whether the employee

willing to go extra mile, taking more

responsibility of their own learning and finding

new ways of doing things (Cook, 2008)

Salary and benefits are the most Competitive total rewards (Armstrong, 2006;

43

important reason I am working here Cook, 2008; Elegbe, 2010)

This company inspires me to give my

best job performance

Enabling social work environment (Elegbe,

2010; Wolf, 2012)

Table 3: Employee’s engagement questions

B: Career Development

One of the key drivers of talent retention internationally is opportunity for career

advancement, the capability of an employee to aspire and grow within the

organisation. In addition, the relationship between a supervisor and the employee

also important in term of remain the talented staff (Abiodun, 2011; Kibui, 2015).

Research respondent are require to choose each of these statements carefully and

select how strong they agree or disagree with the statement that they believe it

applies to their career planning in the organisation.

Questions Source from

The organisation always plans on employee career growth (Kibui, 2015)

Supervisor frequently mentor staff to grow professionally (Kibui, 2015)

Employee career development benefits are in place in this

organisation

(Kibui, 2015)

Employee career development programs offered are linked to

each employee’s career needs

(Kibui, 2015)

Organisation has in-house development programs to develop

its employees

(Kibui, 2015)

Rarely get opportunities to share information and new ideas (Kibui, 2015)

I feel I have a possibility for a career development in this

company

(Kibui, 2015)

The organisation has an employee development strategy

which is clearly understood by all the employees

(Kibui, 2015)

Staffs in this organisation are given the opportunity to handle

tasks and responsibilities that are outside their domain.

(Kibui, 2015)

I feel that I have a possibility to achieve things in this

company

(Cook, 2008;

Elegbe, 2010)

Table 4: Career Development questions

44

C: Organisational Culture

Organisational culture has strong inspirations on employee commitment which

leads to organisational performance (Kumar, 2013) Research respondent are

require to choose how the below statement best describe their current organisation.

Questions Categories

My organisation has cultural diversity and empathy (Manning, 2010) Organisational

Culture My organisation has an inspiring mission (Manning, 2010)

The working environment is open and trustworthy (Gurunathan and

Vijayalakshmi, 2012)

Morale in the company is high (Gurunathan and Vijayalakshmi,

2012)

Working

Environment

Safe working environment is provided (Gurunathan and


Communication is effective at all levels (Gurunathan and


Communication

Rewarded for performance Performance

management

Management provides freedom to plan and schedule work Leadership and

leadership skills Bosses encourage team work

Supervisors do spend good deal of time in listening to employees’

ideas (Gurunathan and Vijayalakshmi, 2012)

Table 5: Organisational Culture questions

D: Psychological Ownership

Andrisani (1977) state that a high level of perceived control is relates positively to

personal confidence, innate ability, and initiative. Hence employees need a well-

defined goal and will be motivated to engage more in order to achieve these goals

(Edwards, 2005). Research respondent are require to choose each of these

statements either agree or disagree to understand their feeling of ownership

towards the organisation.

45


I would be happy of my organisation

could give me a chance to prove to them

that I can do it.

Self-Efficacy : refers to employees judgment

about their capability to perform tasks

(Avey, Avolio, Crossley, and Luthans, 2009;

Olckers, 2015) I am confident I can make a positive

difference in this organisation.

I feel being a member in this organisation

helps define who I am.

Self-identity : refers to employees need a

well-defined goals and understand what

exactly organisation expected them (Avey,

Avolio, Crossley, and Luthans, 2009;

Olckers, 2015)

Knowing my clear roles and

responsibilities.

My work relationships are supportive,

transparent and professional.

Belongingness: a feeling and sense of

belongingness that an employee have toward

the organisation from common goals shared.

(Avey et al., 2009)

I am totally comfortable being in this

organisation.

There is respect amongst people in an

organisation.

Values: Personal values such as trust,

respect, working ethics and loyalty will

enhance employees’ feelings of ownership

(Olckers, 2015).

I feel respected by my line manager and

fellow colleagues.

Management is committed to engagement Goals: Employees’ feelings of ownership

will be improved if they notice and

understanding that management will listen

and attending to their needs (Olckers, 2015)

I have responsibility to take ownership of

my roles within an organisation

Actions: referring to employees’ opportunity

to raise their thoughts and being involved in

decision-making (Olckers, 2015).

Table 6: Psychological Ownership questions

46

3.5.3 Measures Scales

There are four types of measurement scales which are ordinal scale, nominal scale,

ratio scale and interval scale. In this study, ordinal scale, nominal scale and ratio

scale has been used to measure the questionnaires.

3.5.3.1 Ordinal Scale

Ordinal scales enable us to rank, rated, or order the items we measure in terms of

which has more and which has less of the quality represented by the variable (Hair

et al., 2009). Ordinal scales are usually measures of non-numeric concepts like

satisfaction, happiness, or level of agreement.

Ordinal scales also rank-order observations where numbers are used to place

objects in order. In this research project, demographic information such as age

group is measured by ordinal scale.

Besides that, Likert scale also considers type of ordinal scales. Brace (2008) has

introduced the 5 point Likert scale as a technique that provides the respondents an

order of attitude measurements. Hence, 5 point Likert scale is widely used in

quantitative research in term of questionnaire.

Respondents are asked to choose how strong they agree or disagree with the

statement in the questionnaire by choosing a number given on a 5 point scale. The

scores then can be summarized and generate results.

47

The scales were used to evaluate questions are 5 point Likert scales with the

following options:

Strongly Agree 1

Agree 2

Neither agree nor disagree 3

Disagree 4

Strongly disagree 5

1 represent that the respondent strongly agree with the statement and 5 represent

that the respondent completely do not agree with the statement and 3 for not

agreeing nor disagreeing to the statement.

3.5.3.2 Nominal Scale

Nominal scales are used most often for labelling variables, without any

quantitative value to categories or classify data (Hair et al., 2009). Categorical

data are measured on nominal scales which purely assign labels to differentiate

groupings. Typical examples of nominal variables are gender, race, religion,

highest education level and job designation level.

Besides that, it is very clear that the numbers associated with the options above

have no numerical significance, hence, comparison between values variable is

impossible. Descriptive statistics like the mean and standard deviation would

make no sense if calculated.

3.6 Pilot Test

Pilot test is to assist researcher to find out whether the survey, guidance or

observation form can work in the “real world” with the intention to ensure

everyone in the sample understand the questions in the same way as the researcher.

48

Researcher also can realise how long it takes to complete the questionnaire in real

time by trying it out first on few people. It is appropriate to have a pilot test to

check on the reliability of the questionnaire.

Conferring to Sekaran (2003), a pilot test is essential for analysis the validity and

reliability of the data gathering tools. Joppe (2000) also clarifies the reliability of

data is important in determining whether the study accurately measures what was

planned to measure (Kibui, 2015). This process help the researcher create the

questionnaire in a simpler way in terms of easy understanding and preference

language using.

In this study, pilot test was consists of ten part time master students of Universiti

Tunku Abdul Rahman who are working adults that can represent researcher

intended sample. Feedback and recommendation from the pilot test will be

enhancing the reliability of the questionnaire as well as be used to modify and

improve the quality of the questionnaire. This will also reduce the possible

participant mistake to this research. The final version questionnaire will be shown

in the Appendix.

3.7 Data Processing and Analysis Technique

Before copied the data into Statistical Package for Social Scientist (SPSS) for

processing, researcher need to compiled, classified, sorted, edited and entered all

the data into an excel file and validate the data. Researcher also needs to follow up

with respondents via email on questions that were omitted or answered incorrectly

before data processing.

Data collected for this study was analysed using Statistical Package for Social

Sciences (SPSS) in performing descriptive statistics analysis and various

statistical techniques such as independent variables and dependent variable factor

analysis, item analysis, correlations, validity and reliability analysis, multiple

49

regressions and Structural Equation Modelling (SEM) were being performed to

analyse the questionnaire data.

3.7.1 Descriptive Analysis

Summary descriptive statistics were extracted from data collected from the

responses to the first 6 questions to determine demographics of the respondents

(Tanton, 2007). Mugenda and Mugenda (2008) describe descriptive analyses

research as a process of gathering data in order to answer research questions or

test hypothesis pertaining to the current status of the issues in the study.

Descriptive analyses also provide the foundation upon which correlation and

experimental studies materialize (Mugenda & Mugenda, 2008). The results of

descriptive analysis can be expressed using template in the form of table, column,

bar chart, pie chart, line chart and other for analysis. In this research, the

descriptive analysis is used to analyse the respondents’ demographic information.

3.7.2 Validity and Reliability analysis

Data validity and reliability plays a significant function towards simplification of

the gathered data to reflect the accurate characteristics of the study issue.

According to Robson (2002), there are three major threats to reliability of data

collection which are subject or participant error, bias and observer error. Hence,

the validity of the questionnaires concept was determined with construct validity

method.

Researchers would test the reliability and validity of the data during pilot test in

order to ensure valid and significant data can be collected. The results from pilot

test could help researchers in improved the questionnaire development and

planning the conduct of research.

50

Besides that, researchers would review information in prior records, reports, and

summaries to improve on the data collection methods. In addition, researchers

would improve the questions in the questionnaire to be free of bias, such as

eliminated prejudiced opinion or judgment.

3.7.2.1 Cronbach’s Coefficient Alpha test

SPSS also will provide a measurement of reliability of the test items called

Cronbach’s Coefficient alpha. Cronbach’s Coefficient Alpha test is the most

commonly used method to measure internal consistency (McCrae, Kurtz,

Yamagata, and Terracciano, 2011). The higher the correlation among the test

items, the better the Cronbach’s alpha (Anastasi & Urbina, 1997). Nunnally and

Kotsch (1983) states that Cronbach’s alpha score of 0.7 is considered good and

acceptable reliability coefficient (Imna & Hassan, 2015; Ziauddin, Siddiqui, &

Beebi, 1993).

In addition, construct validity is to measure the issue with the questionnaires. A

coefficient from Statistical Package for Social Sciences (SPSS) results of above

0.5 indicates that the data collection tools are valid.

3.7.2.2 Item Analysis

Item analysis was conducted on the items of the talent retention scale,

organisational culture scale, employees’ engagement scale, employees’ career

development scale, and psychological ownership scale by means of the SPSS

Reliability Procedure. This was done to facilitate, identify and reduce items that

do not contribute to an internally reliable description of the concealed variables

measured by these scales (Anastasi & Urbina, 1997).

51

3.7.3 Multiple Regression Analysis

Regression analysis is a statistical instrument that used to define the predictability

(contribution) of the independent variable to the dependent variables (Wambugu,

2014). It used to analyse the association concerning a single dependent variable

with multiple independent variables.

Multiple linear regression model was fitted to the data in order to examine the

effect of the independent variables on the dependent variable (Kibui, 2015). It is

also an extension of simple linear regression where more than one independent

variables, X, are used to predict a single dependent variable, Y (Stockburger,

2001).

There are four independent variables in this study thus the multiple regression

models will be as follows:

Y = βo +β1X1 + β2X2 + β3X3 + β4X4 + ε

Where:

βo= Constant, β1,β2,β3, β4 = coefficient of predictors

Y= represents the dependent variable (staff’s talent management)

X = the independent variable used to predict Y

X1 = represents employee engagement

X2=represents career Development

X3=represents organisational culture

X4= represents psychological Ownership

ε = error term

52

If the hypothesis HO: β1 = 0 is rejected then X1 will be taken to have significant

influence on Y.

The t-test and f-test at 0.05 level of significant are used to determine if the overall

regression model is statistically significant (Kibui, 2015).

3.7.4 Pearson’s Bivariate Correlation Analysis

Pearson’s correlation is a statistical measure that was used to determine the extent

of relationships between the variables. The correlation coefficient is a measure of

linear relationship and hence a value of r = 0 does not indicate there is no

relationship concerning the variables (Evans, 1996). The significant or strength of

the relationship can be determined by looking at the (*) or (**) sign that represent

there is significant relationship or very significant relationship between the

variables.

53

CHAPTER 4

RESEARCH RESULTS AND FINDING

In this Chapter, researcher will interpret and presenting the analysis and results of

104 respondents that gathered from Star Cruise for this research project by using

Statistical Package for Social Scientist (SPSS). It includes descriptive analysis,

regression analysis, and assessment of hypotheses.

4.1 Response Rate

Data was collected across departments of Star Cruise’s employees. A total 151

questionnaires were issued to the employee of Star Cruise through email and 104

were able to complete the questionnaire and returned that represents a response

rate of 68.87%. This was based on respondents’ availability and willingness to

respond to the questionnaire.

According to Mugenda and Mugenda (2008), a response rate of 50% is sufficient

for analysis, hence, the response rate for this research was considered acceptable

as it is above 50%. Baxter and Babbie (2004) also emphasized that the return of

response rates of 50% are adequate to analyse and publish, if it is above 60% is

even better and above 70% is consider very good.

Besides that, (Nyanjom, 2013) has published out a research on employee retention

in state corporations in Kenya and got a response rate of 75.9% which she also

considered it as excellent and can representative of the population. Hence, the

gathered success rate of 68.87% in this study which intimate that the response rate

was good to represent the population of Star Cruise employee.

54

In addition, the achievement response rate was also accredited to the self-examine

closed-end type questionnaires applied by the researcher from which the

intentional respondents were pre-notified preceding to the date of data collection.

Furthermore, follow-up calls with the respondent also enhancing the high

response rate.

4.2 Descriptive Analysis

The personal and contextual characteristics collected through this research project

included gender, age, department, designation job level, educational level and

years worked in the current company. In order to interpret the data, Statistical

Package for Social Scientist (SPSS) was used.

4.2.1 Gender of Participants

Gender

Frequency Percent Valid Percent

Cumulative

Percent

Valid Male 39 37.5 37.5 37.5

Female 65 62.5 62.5 100.0

Total 104 100.0 100.0

Table 7: Gender of participants

The research project engaged 104 employees from Star Cruise organisations in

Malaysia. Majority of the respondents were female which consist of 62.5% from

the study and male 37.5 %. The detailed table 7 has illustrated the gender

information about respondents.

55

4.2.2 Age of Participants

Age


Cumulative

Percent

Valid 21 - 30 years old 56 53.8 53.8 53.8

31- 40 years old 41 39.4 39.4 93.3

41 - 50 years old 7 6.7 6.7 100.0

Total 104 100.0 100.0

Table 8: Age of Participants

Based on Table 8, most of the employees in Star Cruise are aged between 21 - 30

years old that constituted of 53.8% followed by the aged group of 31 - 40 years

old with 39.4%. Only 6.7% of the sample group are in the aged group of 41- 50

years old.

4.2.3 Participants’ Department

Department


Cumulative

Percent

Valid Finance 47 45.2 45.2 45.2

Human Resource 9 8.7 8.7 53.8

Marketing 4 3.8 3.8 57.7

Marine Operations 6 5.8 5.8 63.5

Purchasing 16 15.4 15.4 78.8

Crewing Operations 9 8.7 8.7 87.5

Tax 3 2.9 2.9 90.4

IT 7 6.7 6.7 97.1

Others 3 2.9 2.9 100.0

Total 104 100.0 100.0

Table 9: Participants’ Department

56

The results from Table 9 show that most of the participants (45.2%) are from

finance department. This is due to Star Cruise finance department are consist of

different sub finance department such as central payment team, account receivable

team, general ledger team, project team, budget control team, and intercompany

reconciliation team.

4.2.2 Participants’ Designation Job Level

Designation Job Level


Cumulative

Percent

Valid Senior Officer / Officer 21 20.2 20.2 20.2

Senior Executive / Executive 57 54.8 54.8 75.0

Senior Manager / Manager /

Ass. Manager 26 25.0 25.0 100.0

Total 104 100.0 100.0

Table 10: Participants’ Designation Job Level

54.8% of the staff was senior executive and executive level while 20.2% represent

the senior office or officer level of staff. Follow by 25% of the participants was

the senior manager, manager or assistant manager level which also the middle

management and employee in the company. The detailed table 10 has illustrated

the participants’ designation job level.

57

4.2.4 Education Level of Participants

Education Level


Cumulative

Percent

Valid Below Bachelor's Degree 8 7.7 7.7 7.7

Bachelor's Degree 88 84.6 84.6 92.3

Master's Degree 6 5.8 5.8 98.1

Others 2 1.9 1.9 100.0

Total 104 100.0 100.0

Table 11: Education Level of Participants

In terms of participants’ education level, Table 11 shows that 84.6% of the staff

obtained a Bachelor’s degree while 7.7% are below Bachelor’s degree of

education level. Only 2 people or equivalents of 1.9% of the participant are having

professional education level and 5.8% of the participant completed a Master’s

degree.

4.2.5 Years of Working Experience of Participants

Years of Services in the company


Cumulative

Percent

Valid Less than 1 year 29 27.9 27.9 27.9

1 years - less than 2 years 44 42.3 42.3 70.2




Total 104 100.0 100.0

Table 12: Years of Working Experience of Participants

58

Years of Working Experience with the company shown in Table 12 indicated that

a majority of the employees have been employed with the company for less than

two years. 27.9% of the participants worked less than 1 year the company and

42.3% of the participants worked around 1 – 2 years with the company.

4.3 Reliability and Validity Analysis

Reliability of the research project questionnaire was calculated according to the

Cronbach’s alpha coefficient. Cronbach’s alpha coefficient is generally used to

measure reliability of the question used when we have multiple Likert questions in

the research survey or questionnaire. Nunnally and Kotsch (1983) states that

Cronbach’s alpha score of 0.7 is considered good and acceptable reliability

coefficient (Imna & Hassan, 2015; Ziauddin et al., 1993). It also ensures the

reliability of the questionnaire.

Variable Number of items Cronbach’s Alpha

Employee Engagement 10 0.752

Career Development 10 0.786

Organisational Culture 10 0.877

Psychological Ownership 10 0.838

Talent Retention 12 0.797

Table 13: Summary of the Cronbach’s alpha value

Based on table 13, the reliability test results indicate that all the independent

variable and dependent variable are reliable as the values of Cronbach’s alpha

coefficient are above 7.0. According to Nunnally and Kotsch (1983), all the

question are deemed to be reliable as Cronbach’s alpha score of 0.7 is considered

good.

59

4.4 Hypotheses Testing

Multiple Linear Regression analyses are conducted to examine the relationship

between the four independent variables (organisational culture, employees’

engagement, employees’ career development, and psychological ownership) and

the dependent variable, staff talent management in term of retention.

4.4.1 Multiple Regressions

Table 14: Modal Summary

Model Summaryb

Model R

R

Square

Adjusted

R Square

Std. Error

of the

Estimate

Change Statistics

Durbin-

Watson

R Square

Change

F

Change df1 df2

Sig. F

Change

1 .352a .124 .088 2.52117 .124 3.489 4 99 .010 1.961

a. Predictors: (Constant), Psychological Ownership1, Career Development1, Employee Engagement1,

Organisational Culture1

b. Dependent Variable: Characteristics effect decision to leave

Multiple correlation coefficients, R, is the correlation between the observed and

predicted values of dependent variable as well as can be considered to be one

measure of the quality of the prediction of the dependent variable. From the model

summary above, R is 0.352 which indicate low correlation between all four factors.

Besides that, we find that the adjusted R² of our model is 0.088 with the R² = .124.

R² is the percentage of inconsistency in the dependent variable (Talent

Management) which can be explained by the independent variables (psychological

ownership, career development, employee engagement, and organisational

culture). It also means that the linear regression explains 12.4% of the variance in

the data. In other words, the independent variables (X) can explain 12.4% of the

change in dependent variable (Y). The other 87.6% of the total variation in

dependent variable remains unexplained.

60

The Durbin-Watson d = 1.961, which is between the two critical values of 1.5 < d

< 2.5 and hence we can assume that there is no first order linear auto-correlation

in our multiple linear regression data.

4.4.2 ANOVA

Table 15: ANOVA table

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 88.715 4 22.179 3.489 .010b

Residual 629.275 99 6.356

Total 717.990 103

a. Dependent Variable: Characteristics effect decision to leave

b. Predictors: (Constant), Psychological Ownership1, Career Development1, Employee

Engagement1, Organisational Culture1

Table 15 is related to the ANOVA, the F-statistic is the Mean Square (Regression)

divided by the Mean Square (Residual). The linear regression's F-test has the null

hypothesis that there is no linear relationship between the variables which means

R² = 0. In this research, the R² = .124, F-test is 3.489 and P < 0.01. Large value of

F-statistic shows that the regression model has more explained variance than error

variance (Hair et al., 2009). In addition, P values are used to compare to some alpha

level in testing the null hypothesis that all of the model coefficients are 0 and

illustrate statistical significance. A normally acceptable P value is p < 0.05, which is

generally considered statistically significant and provide the basis to reject the null

hypothesis (Wambugu, 2014). Since in this case, the Sig. is 0.01 which is less than

0.05, we can reject the null hypothesis of no differences.

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4.4.3 Summary of the Variables’ Mean and Standard Deviation

Variable Mean Standard

Deviation

Employee Engagement

1. I feel committed to this company 2.68 .741

2. When I am at work, I enjoy working intensively 2.64 .709

3. It is important to me personally to see this company succeed 2.64 .787

4. At work, I usually feel full of energy 2.73 .672

5. I honestly think this is a good company to work for 2.94 .722

6. I am ok with doing some extra work to get the project done in time and

well 2.18 .721

7. I am proud of the work I do 2.38 .803

8. Salary and benefits are the most important reason I am working here 2.45 .934

9. This company inspires me to give my best job performance 2.86 .660

10. I would recommend the company to potential new employees 2.97 .782

Overall 26.48 4.210

Career Development

1. The organisation always plans on employee career growth 3.02 .696

2. Supervisor frequently mentor staff to grow professionally 2.86 .793

3. Employee career development benefits are in place in this organisation 2.97 .689

4. Employee career development programs offered are linked to each

employee’s career needs 2.88 .673

5. Organisation has in-house development programmes to develop its

employees 2.89 .667

6. Rarely get opportunities to share information and new ideas 2.91 .802

7. I feel I have a possibility for a career development in this company 2.76 .717

8. The organisation has an employee development strategy which is

clearly understood by all the employees. 3.08 .692

9. Staffs in this organisation are given the opportunity to handle tasks and

responsibilities that are outside their domain. 2.89 .787

10. I feel that I have a possibility to achieve things in this company 2.73 .686

Overall 29.00 4.220

62

Organisational Culture

1. Morale in the company is high 2.81 .609

2. Communication is effective at all levels 3.01 .794

3. Rewarded for performance 2.99 .806

4. My organisation has cultural diversity and empathy 2.84 .670

5. Management provides freedom to plan and schedule work 2.78 .750

6. Safe working environment is provided 2.17 .743

7. Supervisors do spend good deal of time in listening to employees’ ideas 2.79 .844

8. Bosses encourage team work 2.50 .788

9. The working environment is open and trustworthy 2.74 .824

10. My organisation has an inspiring mission 2.79 .586

Overall 27.41 5.148

Psychological Ownership

1. I am confident I can make a positive difference in this organisation 2.86 .716

2. I feel being a member in this organisation helps define who I am 2.78 .723

3. I am totally comfortable being in this organisation 2.70 .835

4. There is respect amongst people in an organisation 2.56 .798

5. Management is committed to engagement 2.84 .640

6. I have responsibility to take ownership of my roles within an

organisation 2.38 .658

7. My work relationships are supportive, transparent and professional 2.45 .652

8. I feel respected by my line manager and fellow colleagues 2.31 .848

9. Knowing my clear roles and responsibilities 2.38 .715

10. I would be happy of my organisation could give me a chance to prove

to them that I can do it 2.18 .707

Overall 25.44 4.678

Table 16: Mean and standard deviation of variables

The descriptive data including means and standard deviation of the variables in this

research study are shown in Table 16.

63

4.4.4 Pearson Correlation Coefficient

Table 17: Pearson Correlation Coefficient

The first row gives the correlation relationships between the variables. The

following row provides the implication of the correlation coefficients. The last

row contributes the number of clarifications for each of the variables, and the

number of clarifications that have values for all the independent and dependent

variables.

An all or none judgment of whether or not the variables are significantly related is

one of the ways to understand the significant of relationship. The null hypothesis

(Ho) is that r = 0.0, which mean that the variables are unrelated. Hence, the degree

of relationship is zero. In addition, if the Sig. value listed for a correlation is 0.05

or less, we can assume that the correlation is not the result of chance or random

sampling error. That is also the reasons why we would reject Ho and conclude that

the correlation is a real one.

In this research project, the correlations between the independent variables are

very strong, however, it is not significant when compare with the dependent

variable. Hence, at significance level of 0.05, we accept null hypothesis and

determine that there is no significant linear relationship between the independent

variable and dependent variable.

64

4.4.5 Coefficients

Table 18: Coefficients table

The coefficients table above demonstrates how well each of the variables

contributes to the equation. Y is the dependent variable (staff talent management in

term of retention) and X is the independent variables (organisational culture [OC],

employees’ engagement [EE], employees’ career development [CD], and

psychological ownership [PO]).

The equation for the regression line is shown as follows:

Y = –1.286 – 0.253 OC + 2.533 EE + 0.490 CD – 0.653 PO

The Significant (sig.) value of respectively independent variable describes whether

the variable is substantial to the prediction of dependent variable. Based on Table 17

above, independent variables that have significant values of less than 0.05 is

employee engagement. This indicates that this independent variable is significant and

has relationship with dependent variable in this research project. In contrast,

organisational culture, employees’ career development and psychological

ownership do not have relationship with the dependent variable. Hence, H10 rejected

which H20, H30 and H40 are accepted in this research project.

Standard

ized

Coefficie

nts

B

Std.

Error Beta

Lower

Bound

Upper

Bound

Zero-

order Partial Part Tolerance VIF

(Constant) -1.286 1.970 -.653 .516 -5.195 2.624

Organizational

Culture1-.253 .744 -.049 -.340 .735 -1.730 1.224 .157 -.034 -.032 .420 2.379

Employee

Engagement12.533 .787 .404 3.221 .002 .973 4.094 .337 .308 .303 .563 1.777

Career

Development1.490 .793 .078 .618 .538 -1.084 2.064 .155 .062 .058 .551 1.815

Psychological

Ownership1-.653 .767 -.116 -.851 .397 -2.175 .869 .146 -.085 -.080 .479 2.086

1

a. Dependent Variable: Characteristics effect decis ion to leave

Coefficientsa

Model

Unstandardized

Coefficients

t Sig.

95.0%

Confidence

Interval for B Correlations

Collinearity

Statistics

65

4.5 Assessment of Hypotheses

H10: There is no significant relationship between Employee Engagement and


H11: There is significant relationship between Employee Engagement and


The SPSS output indicates a significant relationship between employee

engagement and staff’s talent management in term of talent retention with a t-

value of 3.221. The significance value is 0.002 and coefficient of 2.533 which

indicating a positive relationship. Therefore, H10 is rejected and we may

concluded that there is significant relationship between employee engagement and


H20: There is no significant relationship between Organisational Culture and


H21: There is significant relationship between Organisational Culture and


The SPSS output indicates a relationship between organisational culture and

staff’s talent management in term of talent retention with a t-value of negative

0.340. The significance value is 0.735 and coefficient of negative 0.253 which

indicating a negative relationship. Therefore, H20 is accepted and we may

concluded that there is no significant relationship between organisational culture and


66

H30: There is no significant relationship between Career Development and


H31: There is significant relationship between Career Development and staff’s


The SPSS output indicates a relationship between career development and staff’s

talent management in term of talent retention with a t-value of 0.490. The

significance value is 0.538 and coefficient of 0.618 which indicating not

significant relationship. Therefore, H30 is accepted and we may concluded that

there is no significant relationship between career development and staff’s talent

management in term of talent retention in an organisation

H40: There is no significant relationship between Psychological Ownership and


H41: There is significant relationship between Psychological Ownership and


The SPSS output indicates a relationship between psychological ownership and

staff’s talent management in term of talent retention with a t-value of negative

0.653. The significance value is 0.397 and coefficient of negative 0.851 which

indicating a negative relationship. Therefore, H40 is accepted and we may

concluded that there is no significant relationship between psychological ownership

and staff’s talent management in term of talent retention in an organisation

67

CHAPTER 5

DISCUSSION AND CONCLUSION

In this chapter, researchers will present the conclusion on the overall research

findings and the implications of the findings. Researchers will also discuss on the

limitations of the study as well as the recommendation for future studies.

5.1 Discussion

This research project focused on employees of Star Cruises Administrative

Services Sdn Bhd as the population and sample. Descriptive statistics were used to

analyse the collected data through SPSS. Meanwhile, correlations analysis and

multiple regressions analysis were performed in order to analyse the relationships

between the independent variables and dependent variable.

Overall, the results obtained were favourable. All had a mean score of around 3

and below which means majority of respondents select either “uncertain”, “agreed”

or “strongly agreed” with the questions.

However, there are few exceptional questions which most of the respondents

disagree. Below are the questions:

1. The organisation always plans on employee career growth (Mean = 3.02)

2. The organisation has an employee development strategy which is clearly

understood by all the employees (Mean = 3.08)

3. Communication is effective at all levels (Mean = 3.01)

68

1. The organisation always plans on employee career growth


Cumulative

Percent

Valid Strongly Agree 1 1.0 1.0 1.0

Agree 19 18.3 18.3 19.2

Neither agree nor disagree 63 60.6 60.6 79.8

Disagree 19 18.3 18.3 98.1

Strongly Disagree 2 1.9 1.9 100.0

Total 104 100.0 100.0

Table 19: Questions 1 for Career Development

The question or statement of the organisation always plans on employee career

growth resulted in an average mean of 3.02. Around 20.1% respondent feel that

the organisation did not plans on employee career growth that attributed to the fact

that it is a negative statement.

8. The organisation has an employee development strategy which is clearly understood by all

the employees.


Cumulative

Percent

Valid Agree 19 18.3 18.3 18.3


Disagree 23 22.1 22.1 98.1


Total 104 100.0 100.0

Table 20: Questions 8 for Career Development

The question or statement of the organisation has an employee development

strategy which is clearly understood by all the employees resulted in an average

mean of 3.08. Around 24% respondents do not understand the employee

development strategy that implement by the organisation.

69

2. Communication is effective at all levels


Cumulative

Percent


Agree 17 16.3 16.3 20.2


Disagree 20 19.2 19.2 97.1


Total 104 100.0 100.0

Table 21: Questions 2 for Organisational Culture

The question or statement of Communication is effective at all levels resulted in

an average mean of 3.01. Around 22.1% respondents do not feel that the

communication is effective at all levels. Top management of Star Cruise should

reveal on their current ways of communicating approach to improve effective

communications across all levels of the organisation

On the other hand, the top three statements or question that majority of

respondents agree are as per below:

1. I am ok with doing some extra work to get the project done in time and

well (Mean = 2.18)

2. I would be happy of my organisation could give me a chance to prove to

them that I can do it (Mean = 2.18)

3. Safe working environment is provided (Mean = 2.17)

70

6. I am ok with doing some extra work to get the project done in time and well


Cumulative

Percent


Agree 61 58.7 58.7 72.1


Disagree 2 1.9 1.9 99.0


Total 104 100.0 100.0

Table 22: Questions 6 for Employee Engagement

There is large percentage (72.2%) of the respondents willing to do some extra

work to get the project done in time and well. This could be valuable information

for the organisation management to uses it for talent retention as the employees is

willing to commit to the organisation.

10. I would be happy of my organisation could give me a chance to prove to them that I can do

it


Cumulative

Percent


Agree 52 50.0 50.0 66.3


Disagree 1 1.0 1.0 100.0

Total 104 100.0 100.0

Table 23: Questions 10 for Psychological Ownership

Besides that, an average mean of 2.18 or around 66.3% of the respondents will be

very happy if the organisation could give them a chance to prove to management

that they can do it. Organisation should recognize and be proud of the fact that

their employees are excited to work hard to prove that they are capable.

71

6. Safe working environment is provided


Cumulative

Percent


Agree 62 59.6 59.6 74.0


Disagree 6 5.8 5.8 100.0

Total 104 100.0 100.0

Table 24: Questions 6 for Organisational Culture

The most agreeable statement by the respondents is safe working environment is

provided by the organisation. Around 74% respondents agree with this statement

and the organisation should continue to ensure the safety of working environment

for the employee. Furthermore, top management should create enabling

environment for the employees to carry out their duties everyday and increase

their sense of belonging as well as their performance.

5.2 Implication of studies

This research project demonstrates how organisations can retain their talent staff

through talent management practice by looking into their organisational culture,

current employees’ engagement, employees’ career development, and

psychological ownership.

This research project is very essential to the organisation to plan for their

strategies of talent retention and minimizing turnover issues. Organisation need to

create a culture of engagement as in today competitive world, talent are shifting

their loyalty to people such as capable leader, team member or project they are

handling. If the organisation can create the culture of engagement that allow them

to engage with each other, they are more likely will stay with the organisation.

72

Besides that, organisation also needs to develop attractive employee value

proposition which is perceived valuable to the employee. Good pay, benefit and

career advancement were the most desire characteristic by the employees toward

the organisation. Top management can look into this to attract potential talent

employees to stay longer with the organisation.

Furthermore, the results in this research project also show that employee

engagement is a significant aspect to the success of talent retention. This is

because who are engage with the organisation are more likely willing to do some

extra work to get the project done in time and contributing to its success which

continuous lead to the customer satisfaction and enhance company performance.

The important on talent career development also has been explored throughout

this research whereby employees wish to know the career development strategy

that going to implement by the organisation as well as they need to clearly

understand the plan. People might want something different from money such as

organisation recognition and reward package for their hard work.

Besides that, organisation needs to build strong communications in order to retain

talent. If there is any miscommunication, it will affect the relationship between the

talent and the top management which may cause conflict as well. Leaders might

also need to give feedback to their employee on a regular basic to enhance their

performance as well as guide them throughout their career enhancement.

In addition, psychological ownership initiates with self actualization and the

aspiration of an individual to psychologically connect with an organisation. Top

management need to take initiative to improve their sense of belonging by engage

them to people or work as well as fit them into the organisation culture.

73

5.3 Limitation

This survey was collected from employees of Star Cruises and hence this study

finding might only limited in understand the staff’ talent management in term of

talent retention in this particular organisation. This research project does no

compare results with other organisation as well as similar industries.

Furthermore, employees of Star Cruises assist to fill up the questionnaire during

their busy schedule and it is difficult to monitor the honesty of the respondent in

answering the questionnaire. The only way to convince them are the data of this

survey is completely anonymous and confidential.

Besides that, the period available for data collection and continued study is

another limitation for this research. The participation of Star Cruise employee was

randomly selected base on their voluntary to answer the self-administered

questionnaire. Hence, only 104 completed survey questionnaire has been collected

to perform analysis.

5.4 Areas for Further Research

This research project focused on 4 talent management practices such as

organisational culture, employees’ engagement, employees’ career development,

and psychological ownership as per discuss above, further research may focus

only one and further develop how they going to influence on talent retention.

Furthermore, future researches may look into the impact of other variables such as

reward and recognition to retain the talent staff. Future researches may also

consider moderating effect of other personal characteristics to the research.

74

5.5 Conclusion

The objective of this research project is to examine whether employee

engagement, career development, organisation culture and psychological

ownership influenced staff’s talent management in term of employee retention.

From the literature reviewed, there are some concern of there is a shortage of the

talent in current market which will affect the organisational performance. As a

results, organisation look into talent management practice with the desire to retain

the high talent staff in the organisation.

We can conclude that employee engagement will have more significant influenced

on staff’s talent management in term of employee retention compare to other

independent variable. Besides that, lack or career development and growth in the

organisation will be one of the variables that affect talent retention. It is better that

organisation have their in house talent management program to develop, growth

and retain their talent employees.

75

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APPENDICES

Appendix A Evaluation Questionnaire for Participants

Dear respondent,

My name is Yap Ying Ying (Student ID: 14UKM01256), a MBA student of

Universiti Tunku Abdul Rahman (UTAR). For my final thesis, I am conducting a

research project on the Relationship between Employee Engagement, Career

Development, Organisational Culture, Psychological Ownership and Staff’s

Talent Management in Service Industry.

Purpose of This Questionnaire

The purpose of this questionnaire is to help provide details regarding Relationship

between Employee Engagement, Career Development, Organisational Culture and

Psychological Ownership on talent management in service industry and to use

these for developmental purposes. In addition, results from these questionnaires

will be used for a research study on talent management in term of talent retention.

This research study has involves the development of the relationship between

Employee Engagement, Career Development, Organisational Culture and

Psychological Ownership in the Service industry. The result will be used for

academic purposes.

What Is Talent Management

In order to gain a competitive advantage in the business market, organisations

need to ensure that they have engaged with highly talented employees, this is

driven by means of Talent Management strategies which focus on the relationship

between Employee Engagement, Career Development, Organisational Culture and

Psychological Ownership in developing and retaining talented employee. This

questionnaire will help to rate Talent Management competencies of Cruise

Industry Company in Kuala Lumpur for developmental purpose.

88

INSTRUCTIONS

Your response to this questionnaire will be handled with confidentiality and do

not indicate your name. Please answer the following questions as diligently as

possible and answer all the questions. Every response is truly important.

The link to this questionnaire can be found from this link: Questionnaire.

This survey contains only three sections, which should take no more than 20

minutes to complete.

Part A - Demographic Information. Please indicate your response to each question

by selecting one of the alternatives provided.

Part B - General attitude towards the organisation. Please select as many answers

as you feel apply to the question being asked.

Part C - Five-point Likert-Scale Questionnaire. Kindly select ONE answer and

rate the below given statement in the appropriate box.

Thank you for your precious time and participation in this survey.

Best regards,

Yap Ying Ying

89

Evaluation Questionnaire for Participants

Section A : Demographic Information

Please check the response to each statement that best describe your situation

1

2

3

4

5

6

Marketing

Bachelor's Degree

Master's Degree

Doctoral's Degree

Others:

Male

Female

Below 21 years old

21 - 30 years old

31- 40 years old

Marine Operations

Purchasing

Crewing Operations

41 - 50 years old

Above 50 years old

Finance

Human Resource

5 years - less than 10 years



20 years or more than 20 years

Gender

Designation Job Level

Education Level

Years of Services in the company

Department

Age

Tax

IT

Less than 1 year



Others:

Senior Officer / Officer

Senior Executive / Executive

Senior Manager / Manager / Ass. Manager

Below Bachelor's Degree

90

Section B : General attitude towards the organisation

Please select as many answers as you feel apply to the question being asked.

Please place a check mark by all that apply for each question.

1 What are the characteristics you desire most in a job?

- Good pay - Experience & development

- Good leadership skill - Career advancement opportunities

- Interesting work - Good company morale

- Benefits - Good internal communication

- Challenging work - Enjoying my job

- Work is appreciated - Like working with colleagues

2 Which one of the following categories best describes your current situation?

- I am not looking for another Job

- I am occasionally looking into other opportunities

- I am continually seeking other opportunities

3 What are the characteristics that most often effect your decision to leave a job?

- Poor pay - Career advancement

- Routine work - More challenging work

- Poor supervisor - Better career opportunity

- Better Benefits - Unfair work/life balance

- Unfair treatment - Poor internal communication

- Better management - More employee events/incentives

- Being overloaded - Low company morale

91

Section C : Five-point Likert-Scale Questionnaire

Kindly select ONE answer and rate the below given statement in the appropriate box.

No Str

on

gly

Ag

ree

Ag

ree

Nei

ther

ag

ree

no

r d

isa

gre

e

Dis

ag

ree

Str

on

gly

Dis

ag

ree

1

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

It is important to me personally to see this company succeed

At work, I usually feel full of energy

I honestly think this is a good company to work for

I am proud of the work I do

Items

Employee Engagement

Career Development

The organisation always plans on employee career growth

Supervisor frequently mentor staff to grow professionally

Employee career development benefits are in place in this organisation

Employee career development programs offered are linked to each

employee’s career needs

organisation has in-house development programmes to develop it’s

employees

Rarely get opportunities to share information and new ideas

I feel I have a possibility for a career development in this company

The organisation has an employee development strategy which is clearly

understood by all the employees

Staffs in this organisation are given the opportunity to handle tasks and

responsibilities that are outside their domain.

I feel that I have a possibility to achieve things in this company

I would recommend the company to potential new employees

I feel committed to this company

When I am at work, I enjoy working intensively

This company inspires me to give my best job performance

I am ok with doing some extra work to get the project done in time and

well

Salary and benefits are the most important reason I am working here

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No Str

on

gly

Ag

ree

Ag

ree

Nei

ther

ag

ree

no

r d

isa

gre

e

Dis

ag

ree

Str

on

gly

Dis

ag

ree

1

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

Psychological Ownership

I am confident I can make a positive difference in this organisation

Items

The working environment is open and trustworthy

Knowing my clear roles and responsibilities

I would be happy of my organisation could give me a chance to prove

to them that I can do it

Organisational Culture

My organisation has an inspiring mission

I have responsibility to take ownership of my roles within an

organisation

My work relationships are supportive, transparent and professional

I feel respected by my line manager and fellow colleagues

I feel being a member in this organisation helps define who I am

I am totally comfortable being in this organisation

There is respect amongst people in an organisation

Management is committed to engagement

Safe working environment is provided

Supervisors do spend good deal of time in listening to employees’ ideas

Bosses encourage team work

Morale in the company is high

Communication is effective at all levels

Rewarded for performance

My organisation has cultural diversity and empathy

Management provides freedom to plan and schedule work

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